{"id":5537,"date":"2025-05-06T18:21:42","date_gmt":"2025-05-06T18:21:42","guid":{"rendered":"https:\/\/nationalgunowner.org\/index.php\/2025\/05\/06\/ceo-jim-farley-says-ford-can-offset-1b-in-tariff-costs\/"},"modified":"2025-05-06T18:21:46","modified_gmt":"2025-05-06T18:21:46","slug":"ceo-jim-farley-says-ford-can-offset-1b-in-tariff-costs","status":"publish","type":"post","link":"https:\/\/nationalgunowner.org\/index.php\/2025\/05\/06\/ceo-jim-farley-says-ford-can-offset-1b-in-tariff-costs\/","title":{"rendered":"CEO Jim Farley Says Ford Can Offset $1B in Tariff Costs"},"content":{"rendered":"
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Ford CEO Jim Farley says the company will take a $1.5 billion tariff hit in 2025. Bill Pugliano\/Getty Images<\/span><\/figcaption><\/figure>\n

Ford<\/a> is about as American as it gets. While many of its competitors build large portions of their vehicles abroad, the Detroit-based automaker manufactures about 80 percent of its U.S. vehicles domestically. Still, Ford isn\u2019t immune to the Trump administration\u2019s tariffs. CEO Jim Farley<\/a> said yesterday (May 5) that the company expects to take a $1.5 billion hit this year due to tariffs\u2014after absorbing $1 billion of their impact through cost cutting.<\/p>\n

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Citing ongoing tariff-related uncertainty, Ford suspended its financial guidance for 2025 as it reported first quarter earnings. \u201cIt\u2019s a pretty dynamic situation\u2014I think this is all really new for all of us,\u201d Farley told analysts during the call.<\/p>\n

In the January-March quarter, Ford posted $40.7 billion in revenue, down 5 percent from the same period last year, which it attributed to planned plant shutdowns. Net income fell 64 percent to $471 million. But both figures beat Wall Street expectations, sending Ford stock up 3 percent today (May 6).<\/p>\n

Ford is hit by a 25 percent tariff on imported cars and an additional 25 percent levy on car components. Combined, that brings its total tariff burden for 2025 to $2.5 billion, the company said. However, it expects to recoup about $1 billion by transporting vehicles across North America with bond carriers that are exempt from tariffs, sourcing more U.S. auto components and halting exports to China (to avoid China\u2019s retaliatory tariffs on American goods).<\/p>\n

Those strategies are already showing results. In the first quarter, Ford lowered its tariff expenses by nearly 35 percent to $200 million. \u201cOur team is in the trenches,\u201d said chief operating officer Kumar Galhotra, crediting the company\u2019s efforts to manage the situation.<\/p>\n

Ford is also capitalizing on surging consumer demand ahead of anticipated price hikes. The company is offering employee pricing on its 2024 and 2025 models, a promotion that has \u201cshrunk our stock in our dealerships,\u201d according to Farley. The incentive program is expected to run through June.<\/p>\n

While Ford hasn\u2019t announced any official pricing changes, Farley recently acknowledged that increases tied to tariffs are possible. For now, the company forecasts that industry prices could rise by 1 percent to 1.5 percent in the second half of the year.<\/p>\n

Even with the added costs, Farley remains optimistic. Compared to competitors like General Motors<\/a>\u2014which builds about half of its U.S. cars overseas and anticipates a $4 billion to $5 billion tariff impact<\/a>\u2014Ford appears better positioned. \u201cAutomakers with the largest U.S. footprint will have a big advantage,\u201d Farley said. \u201cAnd boy, is that true for Ford.\u201d<\/p>\n

\t\t\t\t\"CEO<\/p><\/div>\n