By Nora Eckert and Nathan Gomes
DETROIT (Reuters) -Ford Motor said on Wednesday its 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.
Still, the automaker said tariffs will likely cost more than expected for the year, increasing the higher range of its projection by $500 million, to $3 billion.
Ford shares were down about 2% in after-market trading.
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 $7.0 billion and $8.5 billion.
For the latest quarter, the auto giant reported a 21% decrease in earnings per share to 37 cents. Ford recorded a net loss for the quarter of $36 million, which it said was primarily due to special charges related to the 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 of its vehicles.
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.
Ford said results for the quarter ending in June were $800 million lower because of Washington’s tariffs. Competitor General Motors reported steeper tariff headwinds, with a $1.1 billion hit for the quarter, largely from imports on its entry-level Chevrolet and Buick models made in South Korea.
GM has projected a $4 billion to $5 billion tariff impact for the year, with plans to offset 30% of that expense. Ford has said it expects to offset $1 billion of its gross tariff costs.
Jeep-maker Stellantis said tariffs were expected to add $1.7 billion in expenses for the year.
The White House did not reply to an email requesting comment on the automakers’ projections. In the past, Trump has said the levies will bring manufacturing power and jobs back to the U.S.
Ford boasts domestic production for around 80% of the vehicles it sells in the U.S., about 25% more than its two Detroit rivals, according to business analytics firm GlobalData’s review of last year’s imports.
While this foundation has made it more resilient to tariffs, it still faces steep levies on aluminum, steel and copper that have rocked the industry. Additionally, executives have said that a pinched supply of rare earth magnets from China has disrupted production this quarter.
Ford’s EV investments and quality problems remained among its greatest challenges. The automaker expects to lose up to $5.5 billion on its EV and software business in 2025, and recorded a $1.3 billion operating loss on this segment for the quarter. Elimination of a $7,500 consumer tax credit in September is expected to additionally dampen EV sales growth.
The automaker is also battling costly quality issues and an industry-topping volume of recalls. Reducing these problems has been a priority for Ford CEO Jim Farley since he took on the role in 2020.
(Reporting by Nora Eckert, Nathan Gomes in Bengaluru; Editing by David Gregorio)
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