Will Trump's Tariff Relief Drive Ford's Costs Down in 2025?

Core Insights - Ford Motor Company supports the Trump administration's tariff relief policies, which could significantly lower costs for U.S. automakers [1][3][6] - The administration has delayed the implementation of new 25% tariffs on heavy-duty trucks while reviewing potential revisions [2] - Ford estimates that its tariff-related costs could reach up to $3 billion by 2025 due to ongoing tariff pressures [3] Company Performance - Ford has outperformed the Zacks Automotive-Domestic industry year-to-date, with shares increasing by 28.3%, compared to the industry's 8% growth [5] - General Motors and Tesla have seen share increases of 9.2% and 12.2%, respectively, during the same period [5] Valuation Metrics - Ford appears undervalued with a forward price/sales ratio of 0.31, significantly lower than the industry's 3.32 and General Motors' 0.31, while Tesla's ratio stands at 14.39 [8] - The Zacks Consensus Estimate for Ford's EPS has increased by 2 cents for 2025 and 4 cents for 2026 over the past 60 days [9] Tariff Policy Impact - The proposed tariff exemptions for domestically built vehicles would particularly benefit Ford and other manufacturers with high U.S. production levels, such as Toyota, Honda, Tesla, and General Motors [4][6] - The initiative aims to strengthen domestic manufacturing and protect American jobs, as stated by Republican Senator Bernie Moreno [4]