Ford Delivers Bad News on Trump’s Tariffs

Ford Motor Co. became the latest big name to warn that President Donald Trump’s trade war is about to do significant damage at home. The iconic US company said it suspended its full-year financial guidance, pinning the blame in part on auto tariffs. Ford said it expects Trump’s levies to reduce 2025 adjusted earnings before interest and taxes by about $1.5 billion on a net basis this year.

Several automakers have warned of the steep costs they expect to pay due to Trump’s chaotic tariff campaign and subsequent retaliation by other nations. Trump has argued that the 25% tariffs he’s imposed on imported vehicles and parts are needed to bring more production and jobs to the US. But most economists predict the opposite will be achieved, while a growing number of lawsuits contend Trump’s entire tariff initiative is illegal under US law.