Ford Motor exceeded Wall Street’s expectations for the first quarter but suspended its 2025 financial guidance due to an anticipated $2.5 billion impact from President Trump’s tariffs.

The company plans to offset $1 billion of those costs but warned of risks, including supply chain disruptions and future tariff increases.

Ford’s first-quarter revenue dropped 5% to $40.7 billion, with a nearly 90% decline in EBIT for its “Blue” operations and a 16% revenue drop in its commercial business.

Its electric vehicle division, “Model e,” narrowed its losses, CNBC has reported.

Ford plans to update guidance after the second quarter.

Written by B.C. Begley