Ford Halts Financial Guidance Amid Tariff Concerns

Published 2 hours agoF

Ford Halts Financial Guidance Amid Tariff Concerns

Ford Motor Company has decided to suspend its 2025 financial guidance due to challenging new U.S. tariffs that have created uncertainty in the market. This significant change comes as Ford anticipates a $1.5 billion hit to its adjusted earnings before interest and taxes (EBIT) for 2025. Reuters reported that these tariffs primarily affect imports from Mexico and China.

Previously, in February, Ford set positive projections for its 2025 EBIT, estimating between $7.0 billion and $8.5 billion, which notably excluded the impact of the tariffs. The tariffs could potentially add $2.5 billion in costs, though Ford has been proactive in managing some of this impact by rerouting vehicles through Canada, mitigating approximately $1 billion of the expected expenses.

This move from Ford reflects broader actions in the industry, as General Motors and Stellantis have also suspended guidance in response to similar trade uncertainties. Ford's first-quarter performance showed a drop in net income to $471 million and a decline in revenue by 5%, although revenue still exceeded analysts' expectations. Additionally, Ford continues to face losses in its electric vehicle and software operations, projecting up to $5.5 billion in losses for this year alone, adding to the $10 billion already lost since 2023.

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