Ford Motor has suspended its annual guidance, citing uncertainty surrounding US President Donald Trump’s tariffs, reported Reuters.
The company expects the tariffs to result in a $1.5bn impact on its adjusted earnings before interest and taxes.
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This move comes as the automaker grapples with increased costs from importing vehicles from Mexico and China.
Ford CEO Jim Farley told analysts: “It’s still too early to fully understand our competitors’ responses to these tariffs. It’s clear, however, that in this new environment, automakers with the largest US footprint will have a big advantage.”
Following the announcement, Ford’s shares fell by approximately 2.3% in after-hours trading.
The tariffs are projected to add $2.5bn in costs for the year.
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By GlobalDataFord has managed to mitigate about $1bn of these costs through measures such as using bond carriers to transport vehicles from Mexico to Canada, avoiding US tariffs.
In February, Ford projected earnings before interest and taxes of $7.0bn to $8.5bn for 2025, excluding tariff impacts.
Ford’s chief financial officer, Sherry House, stated that the company was on track to meet this guidance, excluding tariff-related effects.
Unlike General Motors, which recently updated its guidance, Ford has opted to suspend its outlook until there is more clarity on retaliatory tariffs and consumer reactions to potential price increases.
Morningstar Research analyst David Whiston was quoted by the news agency as saying: “It’s a bold move for them to withdraw guidance when GM gave revised guidance including tariffs, though to be fair things are very uncertain.”
The automaker had previously warned that first-quarter results would be affected by production disruptions related to product launches at several plants.
Net income dropped sharply to $471m from $1.3bn a year earlier, while revenue fell 5% to $40.7bn in the quarter but exceeded expectations of about $36bn.
Despite challenges, earnings received a boost as consumers rushed to purchase vehicles, fearing price hikes due to tariffs.
Trump’s 25% tariffs on automotive imports were expected to add over $100bn in costs for US automakers this year.
However, a reprieve was approved last month, providing credits and relief from certain duties.
This month, General Motors reduced its profit forecast, anticipating up to $5bn in tariff-related costs.
Stellantis also suspended its guidance due to tariff uncertainty.
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