Ford Motor Company announced a significant decline in its first-quarter profit, which fell by about two-thirds to $473 million, or 12 cents per share, down from $1.33 billion in the same period last year. Revenue also decreased by 5% to $40.66 billion. Despite surpassing analyst expectations, Ford's stock dropped over 2% in after-hours trading. The automaker expects to incur a $1.5 billion impact from tariffs this year, leading it to withdraw its full-year financial guidance due to uncertainties surrounding trade policies. Ford estimates that tariffs will cost around $2.5 billion in 2025, with an expected $1 billion offset through operational adjustments. The company highlighted risks such as supply chain disruptions and potential future tariffs, which could further impact its profitability. CEO Jim Farley emphasized Ford's advantage due to higher domestic production, positioning it favorably amid trade tensions. The tariffs, mainly 25% on imported vehicles and auto parts, are part of broader US trade policies aimed at boosting domestic manufacturing, but they also pose risks of higher prices and reduced sales. Ford has taken measures like halting exports to China and adjusting import strategies to mitigate tariff effects. The industry faces ongoing uncertainty, with General Motors also projecting up to $5 billion in tariff-related costs for 2025, and the overall auto sector remains cautious about future guidance.