Ford Shares Slip 0.5% as Threat of Canada Tariffs Challenges 7.5x Earnings Valuation

Ford and GM will face tariffs on cars made in Canada due to U.S. tariffs on Canadian goods. Canada's retaliation, effective September 8, may impact housing costs. Ford is up 4.8% YTD but down 3.12% in the past month, while GM is up nearly 7% YTD but down 1.22% in the past month. Both companies may revise earnings guidance.

Ford is recalling 148,663 U.S. vehicles (2024-2026 Mustang) due to potential power loss and reduced visibility. The issue stems from engine compartment wiring harness ground connections, according to the NHTSA. Dealers will replace the affected parts free of charge. This follows a previous recall in June for daytime running lamp issues.

Ford (NYSE:F) reported Q2 2026 adjusted EPS of $0.42, beating estimates by 27%, and raised full-year EBIT guidance to $10B-$11B. Despite a 9% stock drop, adjusted EBIT rose 17% to $2.5B, while revenue fell 4% to $48.3B. Ford Blue and Ford Pro drove profitability, though Model e posted a $919M loss. Morningstar values Ford at $19, citing cost control and quality improvements.

The UK government is reviewing its Zero Emission Vehicle (ZEV) mandate, which requires van manufacturers to meet rising annual targets for zero-emission van sales, reaching 100% by 2035. The consultation, running until October 2026, follows industry concerns over market demand and compliance costs. Companies like Ford and Stellantis support the mandate but seek adjustments to reflect current market conditions. The review aims to balance the transition to electric vehicles with economic sustainab

The Zacks Domestic Auto industry shows resilience, with new-vehicle sales remaining healthy. Affluent consumers support demand, while tax benefits may boost purchases. EV market recovery is uneven. Companies like General Motors (GM), PACCAR (PCAR), Ford (F), and Harley-Davidson (HOG) are highlighted. The industry's Zacks Rank is #67, indicating strong near-term prospects. GM raised its full-year adjusted free cash flow guidance to $9.5-$11.5 billion. PCAR expects Parts sales growth of 3-5% in 20

U.S. President Trump announced a 50% tariff on Canadian vehicles, parts, and trucks, effective January 1, doubling the current 25% rate. Automakers like Ford, GM, Stellantis, Toyota, and Honda face higher costs on key models. Canadian-built vehicles made up 6% of U.S. sales in 2025, per Barclays. Industry executives hope for a deal before the deadline, as tariffs could disrupt the U.S. automotive supply chain.