Ford Pulls 2025 Forecast Over US$1.5 Billion Tariff Cost Concerns

Ford has withdrawn its 2025 financial forecast, citing rising uncertainty over the impact of tariffs, which the company estimates could cost up to US$1.5 billion before interest and taxes. Following the announcement, Ford’s shares dropped 2.3% in after-hours trading, falling to US$14 per share. 

On Apr. 5, Ford CEO Jim Farley stated, “It is still too early to fully understand our competitors’ responses to these tariffs.” The company projects that tariffs will add approximately US$2.5 billion in costs for the full year, driven primarily by increased duties on imported vehicles from Mexico and China.

Ford’s previous guidance, issued in February, forecast earnings between US$7 billion and US$8.5 billion for 2025. However, this projection did not account for the potential impact of tariffs. First-quarter revenue reached US$40.7 billion, surpassing expectations due to a surge in consumer purchases fueled by fears of future price increases and Ford’s promotional incentives.

President Trump’s 25% tariff on car imports is expected to cost US automakers around US$100 billion, according to Reuters estimates. GM CEO Mary Barra recently indicated that GM anticipates a $5 billion impact from these tariffs.

The administration has softened certain provisions, however. Vehicles containing US-made components may qualify for preferential tariffs, and all goods covered under the USMCA agreement are exempt. Additionally, the tariffs will not be applied cumulatively.

Ford’s decision to suspend its annual forecast mirrors similar moves by other automakers including GM, Mercedes-Benz, and Stellantis, all of which have cited the unpredictable financial effects of tariffs.