• Ford anticipates a $1.5 billion reduction in adjusted operating earnings due to tariffs.
• The company reported a 65% drop in first-quarter profits, totaling $471 million.
• Ford has suspended its 2025 financial guidance amid ongoing tariff and supply chain uncertainties.
• Revenues fell by 5% to $40.7 billion, with a 7% drop in wholesale units.
• Ford's CFO noted efforts to mitigate tariff impacts have saved $1 billion so far.

Ford Motor Company has announced that it expects to incur a $1.5 billion hit to its adjusted operating earnings in 2025 due to tariffs implemented by the Trump administration. As a result, the automaker has withdrawn its financial guidance for 2025, stating that predicting future earnings has become too challenging. The company noted that while it faces significant tariff costs, it is less impacted than some competitors because most of its vehicles are manufactured in the United States, according to NY Times.

Ford reported a 65% decline in first-quarter profits, which were $471 million, down from $1.3 billion in the same quarter last year. This drop is attributed not only to tariffs but also to production slowdowns at its Kentucky and Michigan plants due to the launch of new models. Despite the profit beating analyst expectations, Ford's revenues fell by 5% to $40.7 billion, with wholesale units dropping by 7%, as previously indicated by the company, according to Channel News Asia and Bangkok Post.

Ford's finance chief, Sherry House, explained that the company has taken steps to mitigate the tariff burden, estimating that its overall financial exposure from tariffs could reach $2.5 billion. Adjustments in supply chains have allowed Ford to reduce this figure by approximately $1 billion, including shifting vehicle shipments from Mexico to Canada to avoid unnecessary tariffs on parts that merely pass through the U.S., according to India Times.

Looking ahead, Ford's CEOs express intentions to maintain aggressive marketing efforts, including promotions that have successfully boosted sales in April. However, they warn of potential compressions in sales as tariffs may lead to rising prices later in 2025. The company has cautioned that uncertainties surrounding tariffs, supply chain disruptions, and policy changes regarding emissions could significantly impact its business in the near term, as noted by its Chief Operating Officer Kumar Galhotra, according to Channel News Asia, Bangkok Post, and India Times.