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Ford said it expects a $1.5bn hit to this year’s operating profits due to Donald Trump’s tariffs, as the car industry continues to grapple with the implications of the US president’s trade policy.
The Michigan carmaker, citing the uncertainty tied to the levies, on Monday also pulled the financial guidance it issued three months ago. Ford originally said it expected to earn an operating profit of between $7bn-$8.5bn for 2025.
Ford said supply chain havoc from tariffs has the potential to cause industry-wide disruption in vehicle production. It also cited increased tariffs, changes in how they are implemented and the possibility other countries will retaliate as additional threats.
“These are substantial industry risks, which could have significant impacts on financial results, and that make updating full-year guidance challenging right now given the potential range of outcomes,” it said.
Ford on Monday reported that first-quarter net income declined 64 per cent from a year ago to $471mn, while adjusted operating earnings fell to $1bn.
Chief financial officer Sherry House said revenue fell 5 per cent to just under $41bn due to planned downtime at several plants worldwide, including the critical Kentucky Truck Plant that makes Ford’s Super Duty trucks.
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