Ford Motor Company said on Monday the tariff policies taken by the U.S. President Donald Trump's administration is expected to cost the company 1.5 billion U.S. dollars in profit this year.
The company also warned that supply chain disruptions caused by the tariffs could lead to industry-wide interruption in automotive production.
It further noted that other factors, including increases in tariffs, changes in tariff implementation, and the potential retaliatory measures by other nations, could also pose additional threats.
These factors are major industry risks and may have significantly impact on the company's financial performance, it said.
In an online earnings press release posted on Monday, Ford said the company's first-quarter net income dropped by 64 percent year over year to 471 million U.S. dollars and the adjusted earnings before interest and taxes (EBIT) slid to 1 billion U.S. dollars.
Previously, the automaker expected an operating profit of about 7 to 8.5 billion U.S. dollars in 2025 but withdrew the prior projection it released three months ago due to to increasing uncertainty from the tariff policies.
On April 3, the Trump administration imposed a 25 percent tariff on imported vehicles, with an additional 25 percent duty on auto parts scheduled to take effect in early May.
Ford expects 1.5 bln loss in profit due to Trump's tariff policies
