Despite President Donald Trump’s push to “buy American” – and his repeated claims that tariffs on foreign cars and parts would benefit the U.S. auto industry – Ford has posted its first quarterly loss since 2023. The Wall Street Journal reports that Ford lost $29 million in the second quarter, compared to a $1.8 billion profit during the same period in 2024.
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Ford says it paid more than $800 million in tariffs in Q2. While that might seem at odds with the goals of the Trump tariffs, the automaker still imports parts from overseas. On top of that, suppliers importing steel and aluminum are passing those costs along to Ford.
Ford’s US manufacturing edge
Ford manufactures about 80% of the vehicles it sells in the U.S., and at first, the company appeared well-positioned to gain from Trump’s 25% tariff on imported cars and auto parts announced in April.
But since then, Trump has exempted most parts coming from Canada and Mexico, and automakers can now pay tariffs only on non-American parts in vehicles assembled in those countries.
Ford pushes for relief
Ford CFO Sherry House told the Journal that the company is urging the Trump administration to ease tariffs on parts and raw materials.
“They’ve made it clear that Ford, as the most American automaker, should not be disadvantaged,” she said.
Economic impact
Ford manufactures about 80% of its cars, trucks and SUVs in the United States, with 41% of the company’s imports coming from China.
In a press release, House emphasized that Ford remains on solid financial footing – but that tariffs are having a measurable impact.
“We recorded our fourth consecutive quarter of year-over-year cost improvement, excluding the impact of tariffs,“ she said.
Trump recently struck new trade deals with the U.K., Japan and the European Union, with tariff rates ranging from 10% to 15%. Ford says those deals have helped competitors like Toyota and Nissan.
Looking ahead: $2 billion in headwinds
With five months left in 2025, Ford projects a full-year “tariff-related headwind of about $2 billion.” It now expects full-year earnings of between $6.5 billion and $7.5 billion, down from a pre-tariff forecast in February of $7.5 billion to $8.5 billion.
GM feels the pain, too
Ford’s news follows a rough report from rival General Motors, which saw second-quarter income drop 35%. The company blamed $1.1 billion in losses on the tariffs.
Unlike Ford, GM imports nearly half the vehicles it sells in the U.S., though it plans to increase American production by double digits by 2027.
