Ford Expects Big Profit Drop as Trump Tariff, EV Threats Loom

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Ford Motor Co. warned that profit may fall by $2 billion or more this year on lower vehicle prices and costly new-model launches, adding to risks posed by potential steep new tariffs under President Donald Trump and dimming demand for plug-in cars.

The second-largest U.S. automaker expects no more than $8.5 billion in earnings before interest and taxes this year, down from the $10.2 billion it generated in 2024. Sherry House, Ford’s incoming chief financial officer, attributed the drop to an anticipated 2% decline in industrywide prices and the expense of launching new Lincoln Navigator and Ford Expedition SUVs that will wipe out profit in the first quarter.

The forecast doesn’t factor in the effect of new levies or other policy changes adopted by the Trump administration, House said.

“There is no question that 25% tariffs on Mexico and Canada would have a major impact on our industry,” House told reporters Feb. 5. “That said, we believ…