From Nasdaq: 2025-04-21 09:21:00

Ford Motor Company has suspended shipments of several flagship vehicles to China due to ongoing U.S.-China trade conflict and increased retaliatory tariffs. The affected models include the F-150 Raptor pickup, Mustang sports car, Bronco SUV, and Lincoln Navigator. Despite the suspension, Ford will continue to send U.S.-manufactured engines and transmissions to China.

The wider automotive industry is also feeling the impact of tariffs, with estimates suggesting up to $108 billion in additional costs for automakers by the end of 2025. An internal Ford memo hints at potential price adjustments in the U.S. if trade tensions persist, affecting the company’s bottom line and potentially leading to changes in vehicle costs.

Ford’s struggles include significant losses in its EV business, with a widened loss of $5.07 billion in 2024. The automaker expects further losses in 2025, impacting its full-year adjusted EBIT forecast. The weak guidance doesn’t factor in potential policy changes, with tariffs expected to increase raw material costs and affect vehicle prices and demand.

In China, Tesla has halted sales of its U.S.-manufactured Model S and Model X due to high import tariffs, impacting its second-largest market. Rivian Automotive is also feeling the strain from auto tariffs, facing complications with global components and export limits on critical materials. Ford shares have declined 25.2% in the past year, with estimates indicating a year-over-year sales and earnings decline for 2025. The stock currently carries a Zacks Rank of #4 (Sell).



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