Ford suspends 2025 guidance, expects a $1.5 billion tariff hit this year
The automaker, more insulated from tariffs than many rivals, reported its first-quarter earnings on Monday.
Even automakers that are relatively insulated from tariffs are expecting the levies to come with major costs.
Ford on Monday reported adjusted earnings per share of $0.14, beating breakeven estimates. First-quarter sales reached $40.7 billion, besting Wall Street’s expectations of $38.02 billion.
But investor eyes are less focused on Ford’s current performance than its tariff-y year ahead. Ford said it’s estimating a $1.5 billion tariff cost this year. That’s shy of the up to $5 billion General Motors said it could see in 2025.
Like its Detroit rival Stellantis, Ford pulled its full-year outlook in response to tariffs and their “potential for industrywide supply chain disruption.”
Ford fell more than 2% in trading after the bell. As of Monday’s close, its shares were down about 19% over the past 12 months.
A fresh 25% tariff on auto parts that experts anticipate will send vehicle prices spiking went into effect Saturday. Ford’s vehicles consist of 54% US-made parts, according to research.
So far, though, Ford has eaten most of its tariff-related costs. Since the beginning of last month, the automaker has been running an “employee pricing” discount for most models. That, in addition to an industry boost from panic buying, has sent Ford sales surging. The company reported a 16% swell in April sales following a 19% year-over-year jump in March.
Last week, Ford said it would stretch its discounting for one extra month, through July 4, but won’t rule out hiking prices after that. The announcement was in line with reports from earlier last month that Ford — barring tariff relief — would “make vehicle pricing adjustments” for vehicles produced in May, set to arrive on lots in June or July.
