DEARBORN, Mich. (AP) — Ford Motor Co. says it expects to take a $1.5 billion hit to its operating profit from tariffs this year and is withdrawing its full-year financial guidance due to the uncertainty created by the Trump administration’s evolving trade policy.

Ford said Monday that its net income fell by about two-thirds in the first quarter to $473 million, or 12 cents per share, from $1.33 billion, or 33 cents per share in the year-earlier quarter. Revenue dropped 5% to $40.66 billion.

The results topped the expectations of analysts surveyed by FactSet, who forecast earnings per share for the quarter would be flat. Revenue was forecast to be $38.02 billion. Still, the stock fell more than 2% in after-hours trading.

Last week, General Motors said it is bracing for a potential impact from auto tariffs as high as $5 billion in 2025. Ford and Tesla are expected to see a smaller impact from tariffs than GM and other automakers because they assemble more of their cars in the U.S. Still, what impact they do see won’t be insignificant.

Ford originally forecast 2025 earnings before interest and taxes in a range of $7 billion to $8.5 billion, but on Monday the company said the risks associated with tariffs “make updating full year guidance challenging right now given the potential range of outcomes.”

Ford CEO Jim Farley has been touting the advantage that higher domestic production gives his company and he did so again Monday, while acknowledging that the shake-up to the industry from tariffs is still in its early stages.

“It’s too early to gauge the related market dynamics, including the potential industrywide supply chain disruptions,” said Farley said on an earnings call with analysts. “Automakers with the largest U.S. footprint will have a big advantage, and, boy, that is that true for Ford. It puts us in the pole position.”

President Donald Trump says one goal of his trade policy is to move more manufacturing of products such as autos back to the U.S. Last week Trump signed executive orders to relax some of his 25% tariffs on automobiles and auto parts in a move the president said would allow automakers more time to transition their manufacturing operations.

Automakers and independent analyses have indicated that the tariffs could raise prices, reduce sales and make U.S. production less competitive worldwide.

The potential impact of tariffs dominated Ford’s earnings calls, with one executive noting how just a little trouble with a few parts could have a dramatic effect.

“The rare earth materials from China, for example, how they are imported, not just for us, but for the entire industry, has become rather complicated over the last few weeks,” said Chief Operating Officer Kumar Galhotra. “It would take only a few parts to potentially cause some disruption into our production.”