In the first quarter of 2025, Ford Motor Company reported earnings that surpassed Wall Street expectations, yet the automaker suspended its full-year financial guidance due to the anticipated impact of newly imposed tariffs. The company estimates that these tariffs will result in a $2.5 billion cost for the year, with a net adverse effect of approximately $1.5 billion on its adjusted earnings before interest and taxes (EBIT) .

Ford's decision to withdraw its 2025 guidance reflects the significant uncertainty introduced by the tariffs, which were implemented by the Trump administration. These levies include a 25% tariff on imported vehicles and auto parts, affecting the entire automotive industry. Despite Ford's efforts to mitigate the impact—such as ceasing exports to China and adjusting logistics—the company acknowledges the challenges posed by potential supply chain disruptions and retaliatory tariffs from other countries .

Financially, Ford reported a net income of $471 million for the first quarter, a 64% decline from the $1.3 billion earned in the same period the previous year. Revenue fell by 5% to $40.7 billion, down from $42.8 billion. Adjusted EBIT was $1.02 billion, a significant drop from $2.76 billion year-over-year. The company's traditional "Blue" operations saw a nearly 90% decrease in EBIT to $96 million, while the "Pro" commercial business experienced a 16% decline in revenue to $15.2 billion and a drop in EBIT to $1.31 billion .

Ford's electric vehicle division, "Model e," narrowed its losses from $1.33 billion a year ago to $849 million in the first quarter. The company continues to focus on improving quality and reducing costs, aiming for a $1 billion reduction this year, excluding tariff impacts. Ford plans to provide an update on its 2025 guidance during its second-quarter earnings report, as it seeks greater clarity on the evolving trade environment and its implications for the automotive sector .