Ford suffers first quarterly loss since 2023 amid rising tariffs

In the United States, Ford Motor Company has faced significant challenges due to tariff impacts, posting its first quarterly loss in years. The second quarter of 2025 saw the automaker incur a loss of $29 million, a stark contrast to the $1.8 billion profit made during the same period in 2024. Initially, Ford appeared poised to benefit from President Donald Trump's 25% tariffs on imported vehicles and parts, with over 80% of its vehicles manufactured domestically. However, as Trump exempted most parts from Canada and Mexico, the benefits were diminished. Ford’s Chief Financial Officer, Sherry House, expressed the company’s need for relief from the tariffs, emphasizing the burden these levies have placed on their operations. The company managed to achieve a fourth consecutive quarter of cost improvement excluding tariff impacts, yet still faces ongoing financial pressures. With about 41% of its imports sourced from China and significant exposure to rising material costs due to tariffs, Ford is re-evaluating its full-year earnings and has projected a $2 billion headwind related to tariffs. Compounding Ford's troubles is the broader context of U.S. trade policies and recent agreements with countries including the U.K., Japan, and the European Union, which have reportedly provided competitive advantages to foreign automakers like Toyota and Nissan. These developments have contributed to the financial strain felt across the industry, as rival General Motors also faced a considerable income drop attributable to tariff-related losses. Looking ahead, Ford continues to voice the need for a lessened tariff environment, aiming to safeguard its position in the American auto market. The impact of international trade relations on domestic manufacturing remains a crucial concern for Ford and the automotive sector as a whole, as they navigate the complexities of supply chain costs and competitive pressures in a rapidly changing trade landscape.