Ford suspends 2025 profit forecast after Trump tariffs and multibillion-dollar EV losses (Instagram @ford)
Ford has suspended its annual profit forecast due to uncertainty caused by tariffs imposed by President Donald Trump, which are expected to have a total impact of up to $2.5 billion on the automaker’s costs in 2025.
The company estimates that about $1.5 billion will affect its adjusted earnings before interest and taxes. The tariffs primarily target vehicle imports from Mexico and China. Despite measures to offset part of these costs—such as logistical adjustments—Ford is still awaiting greater clarity on trade policy impacts and consumer behavior in response to potential price increases.
In the first quarter, Ford reported a drop in earnings per share and net income but still beat analysts’ expectations due to improvements in quality and cost control. Revenue also declined but remained above forecasts, driven by increased purchases from consumers concerned about future price hikes caused by the tariffs.
Unlike General Motors, which revised its outlook to include the effects of the tariffs, Ford chose to suspend its financial guidance while awaiting a more stable scenario.
In addition to the tariff impacts, the automaker is facing significant losses in its electric vehicle division, which is expected to post up to $5.5 billion in losses in 2025 alone. Since 2023, EV losses have already surpassed $10 billion. In response, the company has canceled an expensive electric architecture project to focus on efficiency. Meanwhile, its combustion engine and commercial vehicle divisions remain the most profitable, although they too saw a decline in revenue compared to the previous year.
Source: New York Post | Photo: Instagram @ford | This content was created with the help of AI and reviewed by the editorial team
