Ford estimates losses of $1.5 billion in 2025 due to Trump's tariffs
- Open Media Ukraine
- May 6
- 2 min read
American automaker Ford has cut its annual forecast due to US tariffs on the automotive industry.
UNN reports with reference to Reuters and L'Opinion.
Details
American automaker Ford announced in a press release on Monday its annual forecast - it has shifted towards significant losses. The reason is the US tariffs on the automotive industry. According to the report, tariffs should have a net impact of $1.5 billion on the company's pro forma operating profit in 2025. Total costs for the year - $2.5 billion. This will be mainly due to imports of cars from Mexico and China.
In February, the Dearborn, Michigan-based automaker forecast earnings before interest and taxes of $7.0 to $8.5 billion for 2025. This forecast did not take into account Trump's tariffs.
Comment
To date, our teams have done a lot to minimize the impact of tariffs
- said CFO Sherry House to reporters.
She added that the net impact in the first quarter was $200 million.
An interesting fact confirmed by the financial manager: 35% of vehicles crossing the United States from Mexico to Canada now use an alternative scheme – a toll for transportation – to avoid US taxation.
Overall, the first quarter report states that Ford's revenue fell 5% to $40.7 billion, but exceeded expectations of approximately $36 billion.
Profits rose as consumers rushed to buy cars, worried that tariffs would lead to higher prices.
Recall
The Trump administration introduced a 25% tariff on imports of auto components, which will lead to higher car prices, repairs and insurance premiums. Volvo, Rivian and GM will be the most affected.
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