Ford Motor Company announced on Monday that it’s expecting to lose $1.5 billion in profits this year due to new U.S. tariff policies. The auto giant also pulled back its performance forecast for 2025 because of worries about trade uncertainties.
“Given material near-term risks, especially the potential for industry-wide supply chain disruption impacting production, the potential for future or increased tariffs in the U.S., changes in the implementation of tariffs including tariff offsets, retaliatory tariffs and other restrictions by other governments and the potential related market impacts, and finally policy uncertainties associated with tax and emissions policy, the company is suspending guidance,” Ford said in a statement.
Despite these hurdles, Ford saw a jump in retail sales in the first quarter as customers hurried to buy cars before the tariffs kicked in. Overall sales fell slightly by 1.3% to 501,291 vehicles, but retail sales climbed 5%, boosted by strong demand for trucks, SUVs, and electric vehicles.
The news highlights how changes in trade policies can have significant effects on global companies. Ford’s move to withdraw its long-term forecast shows the challenges businesses face amid shifting supply chains and international trade rules.
