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U.S. companies are starting to put hard-dollar figures to the damage President Donald Trump's tariffs will do to their bottom lines as trade policy evolves and the economy shows signs of weakening heading into the summer.
Ford Motor (F) pulled its full-year profit guidance late Monday, after its solid first-quarter earnings were likely flattered as customers bought ahead of the expected tariffs, and the administration's levies would likely add around $2.5 billion to its overall cost base.
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The hit to earnings, Ford said, would likely be around $1.5 billion, as some of the parts and semiconductors it needs for its vehicles are difficult to source from U.S.-based suppliers.
Last week General Motors (GM) slashed its 2025 profit forecast by around $3.7 billion and pegged its overall tariff exposure at between $4 billion and $5 billion.
Anderson Economic Group, the East Lansing, Mich., consultancy, estimated in a study last month that the current tariff regime could add as much as $12,000 to the cost of a U.S. vehicle, even with the exemptions and elongated time frames the White House unveiled last week.
The adjustments provide significant and beneficial softening of the cost impact of these tariffs, at least for U.S.-assembled vehicles," the study's lead author, Patrick Anderson, said.
"However, the cost is still substantial for most American cars and trucks. We do not expect consumers to absorb tariff costs that are still above $4,000 for many models, and above $10,000 for luxury vehicles imported from Europe and Asia."
Related: Key driver of U.S. stocks powers through tariff uncertainty
From real cars to toy cars, the tariffs will bite
Hot Wheels maker Mattel (MAT) , meanwhile, also scrapped its full-year profit guidance and said it was likely to pass on some of the expected $270 million in added costs to its customers.
Mattel, which imports around 20% of its toy products from China, said it would tame promotions and accelerate cost cuts companywide to absorb some of the added tariff burden and mitigate the expected spending uncertainty.
"Given the volatile macroeconomic environment and evolving U.S. tariff landscape, it is difficult to predict consumer spending and Mattel's U.S. sales in the remainder of the year and holiday season," the company said in a late Monday statement.
In an open letter to the White House last month, the Toy Association, a New York industry lobbying group, called for a "zero for zero" policy on tariffs, citing "the essential role toys play in child development, learning, and creative play."