Carmaker Ford on Tuesday (native time) stated that it needed to pay $900 million extra in tariffs than it anticipated final 12 months because of a last-minute change by US President Donald Trump‘s administration to the tariff aid programme, BBC reported.
Based on the report, the tariff aid programme was designed to assist automobile firms offset the tariffs on imported items. It allowed firms that import automobile elements however assemble autos in Washington to use for credit to convey their tariff price down. Nevertheless, the last-minute change to the rule solely elevated Ford’s bills.
Ford hit with Trump tariff plans?
In December 2025, the Trump administration officers knowledgeable the carmaker that the aid coverage would come into impact later than initially proposed. Attributable to this delay, Ford acquired fewer credit than it anticipated. The automaker’s Chief Government Officer (CEO), Jim Farley, stated the corporate ended up paying about $2 billion in tariffs in 2025, which was almost twice what it had anticipated. Farley blamed the upper price of tariffs on the sudden change to the tariff credit.
The upper-than-anticipated tariff invoice for Ford highlights the continued uncertainty that carmakers are grappling with as they attempt to handle rising import taxes and push the federal government for aid or exemptions.
Ford shifts away from EV manufacturing
Individually, Ford beforehand introduced that the corporate took a $19.5 billion hit after it determined to shift away from manufacturing electrical autos (EVs). These costs additionally performed a serious function within the firm’s $11.1 billion web loss within the fourth quarter. The corporate follows a calendar-year monetary reporting cycle.
The automaker stated that it’s backing away from its plans to provide giant EVs, citing regulatory adjustments below the Trump administration and weak demand. The corporate stated that the enterprise case for leaning closely into EV manufacturing, particularly large-sized EV fashions, “eroded”.
As an alternative, the corporate deliberate on investing in manufacturing worthwhile hybrid and gas-powered autos and smaller, extra inexpensive EV fashions.
Ford’s resolution to change its observe got here after an identical announcement was made by Basic Motors. In October 2025, the corporate introduced its plan to roll again its EV ambitions as demand faltered and added that it will take a success of $1.6 billion.
Ford quarterly outcomes
Based on a CNBC report, the auto big reported its largest quarterly earnings miss in 4 years. The outcomes have been introduced on Tuesday (native time). Nevertheless, the corporate stated that it believes that 2026 shall be a restoration 12 months. The automaker missed its earnings targets largely due to the hit from sudden tariff prices. It additionally anticipated to obtain sure credit, which have been delayed. Because of this, Ford’s fourth-quarter revenue (EBIT) fell from an anticipated $7.7 billion to $6.8 billion.
Ford’s CFO Sherry Home additionally stated earnings have been damage by fires at a Novelis aluminium plant in New York final 12 months. The plant, which provides aluminium for Ford’s extremely worthwhile F-Sequence pickup vehicles, will not be anticipated to totally reopen till mid-year, affecting manufacturing and income.
Ford lags behind BYD in world gross sales for the primary time
The corporate suffered one other blow after China’s BYD took over Ford when it comes to world gross sales for the primary time, Bloomberg reported. The US automaker’s world car shipments fell almost two per cent final 12 months to only below 4.4 million autos, which was decrease than BYD’s 4.6 million gross sales. This implies BYD has now turn out to be the sixth-largest automaker on the earth, transferring forward of Ford in world rankings.
Though Ford’s gross sales elevated in the USA, the corporate misplaced market share in Europe and particularly in China, the place native manufacturers like BYD, Xiaomi, and Geely are gaining prospects by providing extra inexpensive and technology-focused electrical autos, taking gross sales away from overseas firms like Ford.