Ford Motor Co. has suspended its 2025 financial guidance after projecting a $2.5 billion impact from new U.S. tariffs, despite posting stronger-than-expected Q1 results.
The automaker said it expects to offset $1 billion of the tariff costs through internal measures, bringing the net impact to $1.5 billion this year. The company cited rising trade tensions, potential supply chain disruptions, and the threat of retaliatory tariffs as key risks.
“Our first-quarter results show that the Ford+ plan is working,” said CFO Sherry House. “We remain focused on building a more durable, high-margin business.”
Ford reported Q1 revenue of $40.7 billion, down 5% year-over-year, and net income of $471 million, compared to $1.33 billion in Q1 2024. Adjusted EBIT fell to $1.02 billion from $2.76 billion a year earlier.
Among business units:
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Ford Blue posted a 90% drop in EBIT to $96 million.
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Ford Pro saw revenue decline 16% to $15.2 billion.
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Model e EV losses narrowed to $849 million from $1.33 billion.
Ford also cut its U.S. industry sales forecast to 15.5 million units, down by 500,000 vehicles, due to tariff effects. The levies — 25% on imported vehicles and parts non-compliant with the USMCA — began in April under President Donald Trump.
By comparison, General Motors expects a $4–$5 billion tariff impact this year, having also revised its 2025 outlook.
Ford said adjustments like halting U.S. exports to China and modifying import logistics helped reduce its Q1 tariff burden by 35%.
The company had initially guided 2025 EBIT of $7–$8.5 billion, with $3.5–$4.5 billion in free cash flow. It will revisit that guidance in its Q2 report.
