Ford said that a 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 carmakers 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 retreat from electric vehicle plans, also partly because of Trump administration policies that reversed prior efforts to wean 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 aligned with a similar announcement made by General Motors in October 2025, when GM said it would take a $1.6 billion hit as it rolled back EV ambitions amid weakening demand.
From a supply chain perspective, despite the tariff bill and net loss, the company reported revenue for Q4 2025 that beat analysts’ expectations. Ford sits among the dominant U.S. players alongside Stellantis, GM, Toyota, Honda, Hyundai and Volkswagen, but the tension between Section 232, USMCA, the IRA (Inflation Reduction Act) and BBB credit rules is forcing constant supply chain replanning. Tier-1 suppliers including Magna, BorgWarner, Lear and Aptiv are rebalancing nearshoring footprints across Mexico, the U.S. and Canada. Investments in the Battery Belt, lithium, nickel and cobalt offtake deals, and partnerships with BYD, CATL, LG Energy Solution and SK On remain at the center of automotive supply chain strategy through 2026.
