President Donald Trump’s auto tariffs will cost Ford $1.5 billion this year, but the automaker said Monday it does not expect overall US car prices to rise significantly as a result.

Ford CFO Sherry House told reporters that it expects US car prices to edge up 1% to 1.5% in the second half of 2025 as a result of tariffs on both imported cars and auto parts. The announcement came as part of Ford’s first-quarter earnings report, which showed a sharp drop in profits.

Automakers have been trying to figure out how much Trump’s tariffs will cost their industry. The tariffs include a 25% levy on all imported vehicles and a similar tariff on most auto parts, albeit with a way for automakers to offset some of those costs.

In the near term, automakers could pull back on incentives for buyers, House said, raising prices sooner. New models in the fall could also have higher sticker prices, she said, speaking of broad industry pricing. House did not disclose anything about Ford’s own pricing plans. The automaker expects a sharp overall drop in auto sales later this year across the industry, after Americans rushed to buy vehicles ahead of tariffs in April.

Ford will likely see fewer effects from tariffs than General Motors, which warned shareholders of a possible $4 billion to $5 billion hit this year. But Ford said it makes more than 80% of the cars and trucks it sells to US customers at American assembly plants. That’s more than most other automakers, such as GM.

Ford also withdrew its previous full-year earnings guidance because of the uncertainty caused by Trump’s tariffs.

Last week, CEO Jim Farley told CNN’s Erin Burnett Ford would extended an “employee pricing” offer through July 4, but couldn’t promise the offer would continue after that. Currently, the automaker is selling off its inventory of imported vehicles that arrived before the tariffs took effect last month.

This is a developing story. It will be updated.