Ford Faces $2B Tariff Hit, Revises Earnings Forecast Amidst EV Push

AUSTIN, Texas — Ford Motor Company announced on Wednesday that it expects tariffs to reduce its earnings by $2 billion this year, prompting a revision of its full-year financial outlook. This disclosure comes after the automaker revealed a net loss of $36 million during the second quarter of 2025.

During the earnings call, President and CEO Jim Farley explained that these tariffs represent a significant challenge for the company. He indicated that the tariff impact will be “a net headwind of about $2 billion,” emphasizing that Ford is working with U.S. policymakers to mitigate the effects on consumers and workers.

Ford reinstated its 2025 financial guidance, which had been suspended due to uncertainty surrounding tariffs. The automaker now projects an adjusted EBIT of $6.5 billion to $7.5 billion for the year, a decrease from a previous estimate of $7 billion to $8.5 billion. This adjustment considers $3 billion in gross tariff impacts, offset by $1 billion from recovery actions.

Despite the loss, Ford reported record revenues of $50.2 billion for Q2, up 5% from the previous year. However, adjusted earnings per share fell 21% to $0.37, though this surpassed analyst estimates.

Farley expressed confidence in Ford’s strategic initiatives, noting recent trade agreements with Japan, Europe, and potentially South Korea. He highlighted that these agreements could bolster the company’s strategic direction.

Segment performance varied, with Ford Blue reporting EBIT of $661 million, a decline from $1.17 billion due to tariff costs. The EV division, Ford Model e, experienced a widening loss of $1.3 billion amid rising costs at a new battery plant in Marshall, Michigan.

Retail sentiment regarding Ford on Stocktwits was notably positive, with many users encouraging optimism about the company’s efforts to enhance its EV production. One user pointed out that the earnings call indicated upcoming positive news relating to EVs, while another suggested any potential stock dips might be temporary.

Overall, Ford’s trajectory in the electric vehicle market continues to draw investor interest, despite current financial pressures.