New Tariffs Slam Ford: What It Means for Car Prices and Profits
Ford Motor Company (NYSE: F) is going through a rough patch, and investors are starting to take notice. With new trade tariffs, declining sales, and ongoing quality concerns, the iconic automaker is navigating some serious bumps in the road. The big question—can it turn things around?
Ford’s Stock Struggles Amid Market Uncertainty
Lately, Ford’s stock has been on a downward trend, currently sitting at $9.12, down 2.88% in the latest trading session. Even though the company reported a $1.8 billion profit in the last quarter of 2024—beating expectations—there’s growing concern about its electric vehicle (EV) division. Ford expects its EV and software operations to lose up to $5.5 billion in 2025, raising red flags about its ability to compete with Tesla and other EV giants.
New Tariffs Could Spell Trouble for Ford
Costs will increase due to additional 25% tariffs on imports from Canada and Mexico, as if Ford already had enough on its plate. North American automakers may have to increase prices or bear the additional costs as a result of these tariffs, which experts say may cost them $40 billion a year.
Jim Farley, the CEO of Ford, has publicly denounced the tariffs, stating that they may harm American automakers and increase the cost of automobiles for consumers. Ford could have to pass those expenses on to customers if production costs increase dramatically, which might have an even greater effect on sales.
Another Recall Raises Quality Concerns
On top of financial and trade challenges, Ford is dealing with another quality issue. The company recently recalled over 35,000 vehicles due to faulty LED lights in side mirrors, which could pose a fire hazard. While recalls happen in the industry, repeated quality control problems can shake consumer confidence and hurt Ford’s reputation.
Sales Are Slipping—And That’s a Problem
Ford’s latest sales report isn’t helping matters. U.S. sales dropped 9% in February 2025, with total units sold falling to 158,675. The combination of higher vehicle prices and economic uncertainty seems to be keeping buyers on the sidelines, which is a growing concern for the company’s long-term outlook.
What Are Analysts Saying?
Divergent opinions exist on Ford’s future. A number of analysts have set an average 12-month price target of $11.90, which would be a solid gain from the stock’s current position, after seeing potential. However, many remain wary and want to observe how Ford handles these mounting challenges before making any bold predictions.
Final Thoughts
Ford is facing one of its toughest tests yet, with trade tensions, quality concerns, and falling sales all piling up at once. The company has survived plenty of ups and downs in its long history, but how it navigates these next few months could be crucial. Investors and customers alike will be watching to see if Ford can weather the storm and get back on track.
