Tariffs Bite Ford Harder Than Expected

Ford paid $2 billion in tariffs in 2025 and expects to spend about the same amount in 2026, the Wall Street Journal reported Tuesday (Feb. 10).

Last year’s total was higher than the company expected, according to the report. Ford had expected a tariff-relief program announced in October to be retroactive back to May, but the automaker learned in December that the program would only be retroactive to November, according to the report. The difference added $900 million to Ford tariff bill.

Rival automaker General Motors reported in a January presentation that it paid $3.1 billion in tariff costs in 2025.

Stellantis, whose brands include Chrysler, Dodge, Jeep and Ram, said in a Friday (Feb. 6) press release that it paid 1.2 billion euros (about $1.4 billion) in tariffs in 2025 and expects to pay 1.6 billion euros (about $1.9 billion) in 2026.

It was reported in April that the automotive industry stood to be hit hardest by new U.S. tariffs.

The imposition of the tariffs set off a chain reaction across the industry, with implications for domestic and international players. For example, Stellantis temporarily suspended production of certain models in Canada, while Ford introduced an employee discount initiative aimed at reducing consumer costs for eligible vehicles.

In September, it was reported that the auto industry was being rocked by tariffs and that demand during that quarter was reduced by consumers rushing to buy cars earlier in the year ahead of possible tariffs.

It was reported in October that Ford, General Motors and Stellantis were projecting a combined $7 billion tariff-related hit to their 2025 earnings and that thousands of companies that supply these automakers were struggling with supply chain disruptions, higher prices on products and diminished cash flow.

Automotive retailer AutoNation said Friday (Feb. 6) that it saw a year-over-year decline in vehicle sales during the fourth quarter, in part because consumers raced to buy vehicles earlier in the year before the implementation of tariffs. The company’s same-store new vehicle sales were down 10% year over year during the quarter, while its same-store used vehicle sales were down 5%.