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Ford said he expects a $ 1.5 billion blow for this year’s operating profits due to Donald Trump’s tariffs, as the car industry continues to deal with the implications of the US president’s trade policy.
Michigan car manufacturer, citing tax -related uncertainty, also withdrew the financial instructions he issued three months ago. Ford initially said he expected to earn an operational profit between 7bn $-$ 8.5bn for 2025.
Ford said the destruction of the tariff supply chain has the potential to cause widespread industry interruption in vehicle production. He also cited increased tariffs, changes in the way they are implemented, and the possibility of other countries will take revenge as additional threats.
“These are significant risks to the industry, which can have significant impacts on financial results, and that update the full year guidelines by challenging now given the possible range of results,” she said.
The global car industry is trying to determine the impact of tariffs on vehicles and parts imported into the US, as for months the White House has changed policies and promoted deadlines. Trump said last week that parts imported from China would be excluded, as well as savings savings from tax and aluminum tax.
Despite this return, General Motors still reduced its instructions last week, citing fees. He said he expects regulated operating income to drop between 10bn and 12.5bn $, which sets the middle point of instruction 23 percent lower than the previous range.
Ford is better positioned at tariffs than his rival in Crosstown as it produces a higher percentage of vehicles in the US, but remains exposed. The company said it was waiting for a hit of 1.5bn $ in 2025 on taxes due to taxes.
Main financial officer Sherry House said Ford had reduced the cost of tariffs during the first quarter by nearly 35 percent through changes such as transport vehicles and parts from Mexico to Canada to connected trucks, which do not need to pay custom tasks at the border.
But Ford reported that the first quarter’s net income fell 64 percent from a year earlier to $ 471 million, while the regulated operating income fell to 1bn $.
Revenue dropped 5 percent in just less than $ 41 billion due to planned time in some plants worldwide, including the Critical Truck Factory in Kentucky making Ford’s super task trucks.
Ford’s shares decreased 2.6 percent in the trading on Monday.
