Ford Motor is expecting 25% auto tariffs from President Donald Trump to cost the automaker $1.5 billion in 2025, and has suspended its financial guidance for the year due to the uncertainty created by the levies.

According to The New York Times, Ford initially estimated that tariffs would have a $2.5 billion impact on its profits for the year, but plans to offset $1 billion of those costs by buying more domestic parts and manufacturing more vehicles in the U.S. In a May 5 conference call, Ford chief financial officer Sherry House said that she believes the company is "well-positioned" to adapt to Trump's tariffs, despite concerns over "near-term risks" that led to the decision to drop its profit forecast for the year.

Ford produces a handful of its vehicles in Mexico — including its electric Mustang Mach-E model — and has plans to start manufacturing heavy-duty pickup trucks in Canada next year. In 2024, the company estimated that nearly 80% of the vehicles it sells in the U.S. were assembled in the country, the most of any automaker. That said, V8 engines for Ford's popular F-Series Super Duty pickup are imported from Mexico and Canada, with several other models relying on a range of other imported components, from transmissions to raw materials.

Competitor General Motors is bracing for an even larger hit from Trump's tariffs, after cutting its profit forecast for the year by more than 20% on May 1, for a total expected loss of up to $5 billion. GM produces around 1 million cars and trucks each year in Mexico and Canada, as well as 400,000 vehicles in South Korea. An additional 1.7 million cars and trucks GM made in the U.S. in 2024 contained foreign parts.