President Donald Trump’s tariffs may cost Ford Motors over a billion dollars in losses. Ford Motor Co. said on Monday that it expects to take a $1.5 billion (€1.39 billion) hit to its profit, before interest and taxes, as a result of tariffs this year. The company also withdrew its full-year financial guidance and suspended releasing any new one, due to the uncertainty created by the Trump administration’s evolving trade policy.
However, it seems that the automaker is less affected by the 25% in tariffs than its competitors. General Motors recently announced that it may lose about $5 billion because of Trump’s tariffs.
READ: The perils of Trump’s proposed tariff trade war (February 6, 2025)
“It’s too early to gauge the related market dynamics, including the potential industry wide supply chain disruptions,” Ford CEO Jim Farley said on an earnings call with analysts. “Automakers with the largest US footprint will have a big advantage, and boy, that is true for Ford. It puts us in the pole position.”
Trump’s tariffs in 2025 are having a significant impact on the U.S. economy. The administration’s import taxes, particularly on Chinese goods and steel, are designed to boost domestic manufacturing but have raised consumer prices. The average household could face an additional $1,200 in costs annually due to higher prices on goods. This has led to a downward revision in the U.S. economic growth forecast, with the Federal Reserve predicting a slowdown to 1.7% growth in 2025.
Chief Operating Officer Kumar Galhotra said that the rare earth materials from China were an example of how they were imported not just for them, but for the entire industry that has become rather complicated over the last few weeks. “It would take only a few parts to potentially cause some disruption into our production,” he added.
While tariffs may protect certain U.S. industries, critics argue they harm consumers and reduce global competitiveness. The full economic effects are still unfolding, but the long-term impact on trade relations remains uncertain.