Ford said last-minute change to the Trump administration’s tariff relief program cost the U.S. automaker $900 million more than expected in 2025.
The program is meant to help car manufacturers offset the levies applied by the administration of U.S. President Donald Trump, allowing automakers that import parts for vehicles assembled in the U.S. to apply for credits. But, reports BBC News, administration officials told the company in December of a new, later effective date for the policy, leading to fewer gains from the credits than anticipated.
Chief executive Jim Farley said on February 10 that Ford spent double what it had expected on tariffs in 2025 — roughly $2 billion — due to “the unexpected and late year change in tariff credits for auto parts.”
Separately, Ford had previously disclosed a $19.5 billion hit as a result of its shift away from electric vehicle plans, also partly because of the Trump administration’s policies, reversing prior polices aimed at weaning the auto industry off fossil-fuel-powered cars. Those charges also contributed to its fourth-quarter net loss of $11.1 billion.
The carmaker’s decision to alter its EV plans were in line with a similar announcement made by General Motors in October 2025. General Motors said it would take a $1.6 billion hit as it rolls back its EV ambitions because of weakening demand.
Still, despite the tariff bill and net loss, the company reported revenue for Q4 2025 that beat analysts’ expectations, the BBC said.