Ford Motor Co. warned profit this year will see a sharp drop on the growing fallout from President Donald Trump’s tariffs, underscoring the dramatic policy shifts in Washington that are upending the global 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 paid out more than $800 million in tariffs last quarter, despite manufacturing most of its vehicles in the U.S. The tariff bill came from parts imported from outside of the country as well as from fees on steel and aluminum.