Ford stated this week that U.S. tariffs on imported vehicles, as well as on steel and aluminium, will likely cost more than anticipated for the year. On that, the automaker's shares fell by approximately 3 percent in stock market transactions.
The company also shared that its second-quarter results were affected by tariffs to the tune of $800 million USD. The impact of the import tariffs was less pronounced than that affecting some U.S. rivals, partly thanks to Ford's strong domestic production base. About 80 percent of the vehicles the firm sells in the U.S. are produced domestically.
Nevertheless, the announced losses for Q2 2025 amount to $36 million USD. According to Reuters, this is primarily due to costs associated with the cancellation of the company's planned three-row electric SUV. Recalls have also been costly for the company, which has already launched 90 campaigns since January 1, 2025.
For the full year, the automaker raised the upper end of its forecast for the impact of tariffs on gross revenue by $500 million USD, to $3 billion USD. Company CFO Sherry House said Ford revised its forecast upwards because tariffs on imported vehicles and components from Mexico and Canada remained higher than expected. She also cited high tariffs on aluminium and steel.
Ford CEO Jim Farley stated that the company is in daily contact with the White House, with the ultimate goal of reducing its tariff costs, particularly those on spare parts. "We see a lot of opportunities for improvement based on how negotiations with the administration are progressing," he said.
Despite everything, Ford said it expects to record an adjusted profit before interest and taxes of $6.5 billion to $7.5 billion USD for the full year. In February 2025, however, the forecast was between $7.0 billion and $8.5 billion USD.