Ford is attempting to sort out its product and sales strategy in the wake of the Trump adminstration’s tariffs. On an earnings call for investors today, company CFO Sherry House said tariffs cost the company around $200 million in the first quarter of the year, with income plunging 63 percent during the same timeframe. Tariffs weren’t completely to blame, however; model-year changeovers for the Ford Expedition and Lincoln Navigator caused significant downtime for some of the company’s plants, and both fleet and retail sales were a bit lower year-over-year as well.
- Base Trim Engine
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3.5L V6 twin-turbo gas
- Base Trim Transmission
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10-speed automatic
- Base Trim Drivetrain
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All-Wheel Drive
The Company Will Pause Imports Of Certain Cars
In response to the tariffs on cars imported from China, Ford’s luxury division Lincoln will pause imports of the popular and well-regarded Nautilus crossover until the 2026 model year changeover. Lincoln says it has enough stock of the Nautilus already imported to last through that time period, meaning consumers likely won’t feel much of a pinch in terms of vehicle availability. The Nautilus starts at $55,535 for the 2025 model year, though that may change once the company starts importing cars again from its factory in Hangzhou, China, once the 2026 model arrives.
In order to cut costs relating to tariffs, Ford is planning on using bonded carriers to move parts and completed vehicles to avoid paying the import duties. For example, some of the company’s Canadian-built vehicles and components will travel from Canada to Mexico – through the US – without paying tariffs. The inverse will be true as well; the Ford Bronco Sport and Escape are built south of the border, and bonded carriers will bring them to Canada to avoid tariffs as they pass through the US. Insofar as relocating production from those countries to the US, Ford hasn’t made any announcements just yet, although its cross-town rival Stellantis has some plans.
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EVs Are One Bright Spot In The Company’s Finances
During the first quarter of 2024, Ford’s “Model e” business unit, which covers EVs and charging solutions, lost $1.3 billion. Q1 2025 didn’t break into profitability, but losses were down to $845 million, a big improvement. Ford EV sales rose a healthy 15 percent during the quarter, thanks in part to big discounts on leftover 2024 Mustang Mach-E crossovers and a healthy price cut for the 2025 model.
Unfortunately, the same wasn’t true for the company’s fleet sales. Ford Pro turned a $1.3 billion profit in the first three months of 2025, but that number is down 56 percent from the previous year. According to Automotive News, lower wholesale and fleet pricing led to the tumble in profits for the business-facing side of the company.
Related
New Trump Tariff Rules Make Importing Parts And Materials Less Costly
Automakers will no longer be charged duties on raw materials if they’re already being saddled with tariffs on imported cars.
The company thinks it’s on track to achieve its prior full-year guidance of between $7 billion and $8.5 billion earnings before interest and taxes, but Ford is suspending its previous goal for the time being. The Blue Oval says that with volatility surrounding tariffs, government regulations, and emissions rules, it will withhold guidance until the second-quarter earnings call.
Source: Automotive News
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