Ford Drops 2025 Guidance, Faces $2.5B Tariff Cost

Ford Motor exceeded Q1 expectations but stopped providing 2025 guidance because Trump’s tariffs resulted in a $2.5 billion loss which included 25% vehicle and parts levies that started in April and Saturday. Ford plans to reduce costs and raise prices by $1 billion to achieve a $1.5 billion net effect which is less than General Motors’ predicted $4-5 billion impact. Ford identified supply chain disruptions and possible retaliatory tariffs as industry-wide risks. The trade war’s uncertainty threatens production and sales, forcing Ford to adapt swiftly. The company takes proactive steps to reduce the impact but rising trade tensions create financial instability in this volatile market.