Ford Motor Company (NYSE: F) has suspended its full-year financial guidance for 2025, projecting that President Donald Trump’s auto tariffs will reduce its adjusted earnings by approximately $1.5 billion this year.

The automaker announced the forecast withdrawal on Monday while reporting first-quarter profits that exceeded analyst expectations. Ford posted adjusted earnings of 14 cents per share, outperforming the 4-cent loss analysts had predicted, with profits of $471 million.

The carmaker enumerated seven contributing factors behind the decision to pull the forecast, with key concerns centering around potential manufacturing disruptions across the industry due to Trump’s trade policies and concerns that tariff rates might be increased in future rounds.

Chief Financial Officer Sherry House said the company faces a total tariff impact of about $2.5 billion, though Ford expects to offset $1 billion through supply chain adjustments, including using bonded transportation to shield parts from tariffs as they cross international borders.

“Our teams have done a lot to minimize the impact of tariffs on our business,” House said during a conference call with reporters.

The company’s tariff exposure is less severe than competitors like General Motors (NYSE: GM), which last week cut its own profit outlook and projected a $5 billion tariff impact. Ford produces approximately 80% of its US-sold vehicles domestically, limiting some exposure.

Despite some relief measures announced by Trump last week, including a two-year phase-in period for auto parts tariffs, Ford executives expect vehicle pricing to rise later in 2025 as the tariffs reverberate through the industry.

CEO Jim Farley said Ford will delay price increases until it sees how competitors respond to the added costs. They plan to provide an updated outlook when they report second-quarter earnings.

Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.