Ford estimates losses of $1.5 billion in 2025 due to Trump's tariffs
Kyiv • UNN
Ford has worsened its profit forecast for 2025 due to US tariffs on the automotive industry. The company's losses may reach $1.5.
American automaker Ford has cut its annual forecast due to US tariffs on the automotive industry.
UNN reports with reference to Reuters and L'Opinion.
Details
American automaker Ford announced in a press release on Monday its annual forecast - it has shifted towards significant losses. The reason is the US tariffs on the automotive industry. According to the report, tariffs should have a net impact of $1.5 billion on the company's pro forma operating profit in 2025. Total costs for the year - $2.5 billion. This will be mainly due to imports of cars from Mexico and China.
In February, the Dearborn, Michigan-based automaker forecast earnings before interest and taxes of $7.0 to $8.5 billion for 2025. This forecast did not take into account Trump's tariffs.
Comment
To date, our teams have done a lot to minimize the impact of tariffs
She added that the net impact in the first quarter was $200 million.
An interesting fact confirmed by the financial manager: 35% of vehicles crossing the United States from Mexico to Canada now use an alternative scheme – a toll for transportation – to avoid US taxation.
Overall, the first quarter report states that Ford's revenue fell 5% to $40.7 billion, but exceeded expectations of approximately $36 billion.
Profits rose as consumers rushed to buy cars, worried that tariffs would lead to higher prices.
Recall
The Trump administration introduced a 25% tariff on imports of auto components, which will lead to higher car prices, repairs and insurance premiums. Volvo, Rivian and GM will be the most affected.