By Nora Eckert and Nathan Gomes
DETROIT (Reuters) -Ford Motor suspended its annual guidance on Monday because of uncertainty around U.S. President Donald Trump’s tariffs, saying the levies would cost the company about $1.5 billion in adjusted earnings before interest and taxes.
In February, the Dearborn, Michigan automaker projected earnings before interest and taxes of $7.0 billion to $8.5 billion for 2025. That forecast did not take tariffs into account.
Ford Chief Financial Officer Sherry House said the company was on track to meet that guidance, excluding the fallout from tariffs.
“We are focused on managing what we control,” House said.
While rivals such as General Motors recently provided updated guidance, Ford executives said they suspended the company’s outlook until they have more clarity about the effect of retaliatory tariffs, as well as how consumers may react to price increases.
Ford’s earnings per share fell to 14 cents in the first quarter, far surpassing LSEG analysts’ estimate of 2 cents per share but down from 49 cents a year earlier. Cost and quality improvements helped Ford beat expectations, executives said.
Earlier this year, the automaker had warned that first-quarter results would be affected by production disruptions related to product launches at several plants. Net income fell sharply to $471 million from $1.3 billion a year earlier.
Ford’s revenue fell 5% to $40.7 billion in the quarter but beat expectations of about $36 billion. Earnings got a boost as consumers rushed to snatch up vehicles, concerned tariffs would lead to price hikes. Ford was one of a few automakers that ran incentives to grab market share during this buying frenzy.
Ford said tariffs would add $2.5 billion in costs overall for the year, mainly related to expenses from importing vehicles from Mexico and China. The automaker suspended automotive exports to China, but still imports vehicles like its Lincoln Nautilus from the country.
Ford said it has been able to reduce about $1 billion of that cost through various actions, including transporting vehicles from Mexico to Canada using bond carriers, so they are not subject to U.S. tariffs, House said.
Trump’s 25% tariffs on automotive imports were expected to add more than $100 billion in costs for automakers in the U.S. this year, according to some estimates.
The president approved a reprieve last month around levies placed on automotive parts, providing auto companies with credits for up to 15% of the value of vehicles assembled domestically, as well as relief from other duties.
