By Nora Eckert and Nathan Gomes
DETROIT (Reuters) -Ford Motor said on Wednesday that U.S. tariffs on imported vehicles, as well as on steel and aluminum, will likely cost more than expected for the year, and the automaker’s shares slid about 3% in after-market trading.
Ford reported that second-quarter results took an $800-million hit from tariffs, a less pronounced impact than some of its U.S. rivals thanks to Ford’s strong domestic manufacturing base. For the full year, the automaker lifted the higher range of its projected hit to gross revenues from tariffs by $500 million, to $3 billion.
Ford CEO Jim Farley said the company is in daily contact with the White House, with an ultimate goal of reducing its tariff costs, especially on parts tariffs. “We see there’s a lot of upside depending on how the negotiation goes with the administration,” Farley said.
Chief Financial Officer Sherry House said Ford raised the projection because duties on Mexico and Canada have remained higher for longer than expected. She also cited elevated levies on aluminum and steel.
The Dearborn, Michigan, automaker also issued guidance for annual results on Wednesday, after suspending it in May to assess the impact of U.S. President Donald Trump’s tariffs.
Ford said it now plans to record full-year adjusted earnings before interest and taxes of $6.5 billion to $7.5 billion, down from its February 2025 projection of between $7 billion and $8.5 billion.
For the latest quarter, the automaker reported a 21% decrease in earnings per share to 37 cents, beating LSEG analysts’ expectation of 33 cents. Ford recorded a net loss for the quarter of $36 million, which it said was primarily due to special charges related to cancellation of a three-row electric SUV, and field service actions from a $570-million recall.
Ford posted revenue of $50.2 billion for the quarter, up 5% from a year earlier. The automaker has clawed away market share from rivals with aggressive discounting programs and a “zero, zero, zero” campaign, which offers shoppers a $0 down payment, zero percent interest for 48 months, and zero payments for the first 90 days on most vehicles.
“The substantial revenue outperformance demonstrates Ford’s pricing power, but margin compression suggests underlying cost pressures remain problematic,” CFRA Research analyst Garrett Nelson said in a note.
Gasoline-powered vehicles notched a 15.5% increase in the quarter on the back of these deals. Hybrid offers were also popular with shoppers in the quarter.