Ford Motor Co. said its profit this year is poised for a sharp drop on the growing fallout from President Donald Trump’s tariffs, underscoring the dramatic policy shifts in Washington that are upending the auto industry.

Ford Motor said on Wednesday that U.S. tariffs on imported vehicles, as well as on steel and aluminum, will likely cost more than expected for the year, and the automaker's shares slid about 3% in after-market trading.

Ford Motor Co. late Wednesday warned investors it will take a bigger hit this year from tariffs, and reinstated its outlook for the year.

Automotive giant Ford posted its first quarterly loss in two years Wednesday after seeing $800 million in tariff costs. Ford reported $50.2 billion in second-quarter revenue, a 5 percent increase from the second quarter of last year.

Ford recalls and tariffs added up to a $36 million net loss for the 2nd quarter of 2025 and the full-year outlook doesn’t look much better. The automaker now expects tariffs impact its finances more severely than initially projected.

Motor industry giant Ford says it expects tariffs to cost it about $2bn (£1.5bn) this year, which is more than previously expected, despite building most of its cars in America. The company says it had already paid an extra $800m in duties in the three months ending in June.

Ford now expects a $3 billion tariff hit this year — pushing up costs on parts, altering vehicle pricing and narrowing dealer discounts even as sales stay strong.

Ford Motor said Wednesday that US tariffs on imported vehicles, as well as materials like steel and aluminum, will likely cost more than expected for the year, and the automaker’s shares slid about 3% in after-market trading.