Ford Motor Co. said its profit this year is poised for a sharp drop on the growing fallout from President Donald Trump’s tariffs, underscoring the dramatic policy shifts in Washington that are upending the auto industry.

Carmakers have so far avoided passing on much of the cost of tariffs to consumers. They built as many cars as they could before tariffs took effect, and have absorbed some of the cost. Ford expects that retail prices for its vehicles will rise only 1 percent this year, Ms. House said.

Ford Motor Co. late Wednesday warned investors it will take a bigger hit this year from tariffs, and reinstated its outlook for the year.