American automaker Ford has felt the impact of the tariffs imposed by the Trump administration, costing the company $1.5 billion in expected operating profits for 2025, according to an official company statement.
Despite the challenges, Ford announced preliminary results for this year that exceeded expectations but suspended its annual forecasts due to the repercussions of these tariffs on the sector.
The company reported a net loss of $200 million in the first quarter of 2025, compared to a net profit of $10.2 billion the previous year. CFO Sherry House noted that the company is striving to mitigate the effects of these tariff policies by adopting alternative strategies such as guaranteed transportation, which is now used for 35% of vehicle movement between Mexico and Canada through U.S. territory to avoid tariffs.
The Trump administration imposed a 25% tariff on new cars starting in early April, followed by similar tariffs on spare parts beginning May 3, with some exemptions for products manufactured in Mexico and Canada under the United States-Mexico-Canada Agreement (USMCA). Ford reported that 80% of the spare parts used in its 24 U.S. factories fall under this agreement.
In light of these challenges, Kumar Galhotra, the company’s Chief Operating Officer, announced that Ford is exploring opportunities to localize supply chains within the United States to reduce reliance on imports affected by tariffs.
While Ford had anticipated operating profits between $7 and $8.5 billion and cash flows of $4.5 billion in its annual announcement in early February, these figures have now become uncertain due to fluctuations related to tariffs, particularly those imposed on steel and aluminum.
Although the company relies 85% on American steel and entirely sources its aluminum domestically, costs remain susceptible to fluctuations due to the influence of global prices shaped by these trade policies.
In conclusion, as Ford continues to navigate a turbulent business environment, the company appears determined to adapt and seek sustainable solutions to maintain its position in a market undergoing radical transformations.
