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Ford Motor Company has suspended its full-year financial guidance after warning that new tariffs under President Trump's trade policy could cost the automaker up to $2.5 billion in 2025. The company said about $1.5 billion of that will directly affect its profits.

Ford made the announcement Monday, just after markets closed, causing its stock to fall by 2.3% in after-hours trading.

The automaker explained that the tariffs—mainly tied to vehicle imports from Mexico and China—create too much uncertainty to maintain its previous guidance.

"It's still too early to fully understand our competitors' responses to these tariffs," CEO Jim Farley told analysts. "But it's clear that automakers with more US production will have a real advantage."

Ford's earnings before interest and taxes (EBIT) were already hit by nearly $200 million in the first quarter due to tariff-related costs.

Still, the company posted Q1 revenue of $40.7 billion, beating expectations of $38 billion, and adjusted earnings per share of 14 cents—well ahead of the expected 2 cents. However, that was down sharply from 49 cents a year ago, Reuters said.

In its February forecast, Ford estimated its full-year earnings before interest and taxes (EBIT) would range from $7 billion to $8.5 billion, with the projection not factoring in potential tariff impacts.

While it was on track to meet that target, the growing costs and uncertainty forced the company to pause its guidance.

Ford Cuts Forecast While GM Moves Ahead With $5B Tariff Hit

In contrast to Ford, General Motors recently revised its financial outlook, taking into account potential tariff impacts that could reach as high as $5 billion.

To reduce costs, Ford has used creative shipping methods—like sending vehicles from Mexico through Canada on bond carriers—to avoid US duties. These actions have helped offset about $1 billion in expenses.

Chief Financial Officer Sherry House confirmed that without tariffs, Ford would have stayed on course. But with additional economic unknowns and potential consumer pushback to rising prices, the company decided to hold off on future predictions.

According to Electrek, Ford also faces major losses in its electric vehicle (EV) division. The Model e unit reported a nearly $849 million EBIT loss in Q1 alone.

Since 2023, Ford has incurred losses exceeding $10 billion related to its electric vehicle operations, reflecting ongoing challenges in the transition to EVs. The company recently ended a costly EV architecture project called FNV4 to improve efficiency.

Despite challenges, Ford's "From America, For America" campaign—featuring employee pricing on new models—is still running and may help sustain demand. More details are expected during the company's annual meeting on May 8.

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