Ford CEO warns automakers could lose “billions” if Trump tariffs take effect

Ford is bracing for a challenging 2025, cutting its earnings forecast to as much as $8.5 billion, down from $10.2 billion last year, as vehicle prices soften and the company absorbs the cost of launching new SUVs.

Why it matters: Beyond its financial pressures, Ford is now caught in a policy storm. The Trump administration is considering 25% tariffs on imports from Mexico and Canada, two key regions for Ford’s supply chain. CEO Jim Farley warns that the impact would be severe.

What Farley is saying:

• A 25% levy on goods from those countries would cost the company ‘billions and billions’ in profit and lead to industrywide layoffs, he told Bloomberg TV.

• He argues that U.S. automakers would be hit harder than foreign competitors importing from Asia and Europe, who wouldn’t face the same penalties.

• “There are millions of vehicles coming into our country” that aren’t subject to the proposed tariffs, he said on a recent earnings call. “We can’t just cherry-pick one place or the other, because this is a bonanza for our import competitors.”

Meanwhile—Ford’s EV unit lost $5.1 billion in 2024, and those losses could grow to $5.5 billion this year—even as sales increase.

• So—the company is shifting to cheaper, more efficient EVs, but those won’t hit the market until 2027.

• “We would rather grow profitably than grow,” Farley said, adding that Ford has learned key lessons from Tesla and Chinese automakers on designing cost-efficient EVs.

Between the lines: Even Ford’s strongest divisions are feeling the squeeze. Ford Pro, its commercial truck business, is expected to generate $8 billion in earnings this year, down from $9 billion last year. Profits from gas and hybrid models are also expected to decline.

What’s next: Despite the challenges—Ford is focused on long-term gains. The company is cutting costs, improving quality, and working to make its EV lineup profitable—moves Farley says will put Ford in a stronger position down the road.

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