Ford Stock Drops On Downbeat 2025 Outlook Amid Trump Tariffs

Shares of Ford Motor Co. continued to slide on Thursday after the carmaker predicted weaker earnings growth in 2025 because of losses in its electric vehicles business and acknowledging that President Donald Trump's planned tariffs "would have a huge impact."

The company on Wednesday announced that it had beaten Wall Street estimates with a fourth-quarter net income of $1.8 billion, but warned of "headwinds related to market factors," sending shares down 5%, Yahoo Finance reported.

Ford's outlook for 2025 sees full-year 2025 adjusted EBIT of $7 billion to $8.5 billion, and $3.5 billion to $4.5 billion in adjusted free cash flow.

CEO James Farley said on an earnings call that a few weeks of tariffs are "manageable."

But he added that there is "no question that tariffs at 25% level from Canada and Mexico, if they're protracted, would have a huge impact on our industry with billions of dollars of industry profits wiped out and adverse effect on the U.S."

Trump announced that 25% tariffs on Mexican and Canadian goods would take effect on Tuesday, but suspended the levies for 30 days after reaching agreements with Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau to beef up border enforcement.

The 10% tariffs on Chinese goods remain in effect.

Ford's Model E recorded a full-year loss of $5.08 billion for 2024, and the company's outlook calls on the electric vehicle unit's losses this year to hit $5.5 billion, the Associated Press reported.