The plan is aimed to assist car companies deal with US President Donald Trump’s tariffs. It also lets car producers who bring in parts for cars made in the US apply for credits. But in December, government authorities advised the company that the scheme would start later than planned, which meant that the credits would not be as useful as they had hoped.
Jim Farley, the CEO, revealed that Ford paid twice as much on tariffs in 2025 as it had planned—about $2 billion—because “the unexpected and late year change in tariff credits for auto parts.” Ford’s higher-than-expected tariff charges highlight the auto industry’s volatility as companies contend with tariff costs and seek exemptions.
Ford had already said it would lose $19.5 billion after it stopped making electric cars. Those costs also added to its $11.1 billion deficit in the fourth quarter. The car maker stated it was stepping away from plans to develop large electric vehicles because demand was low and regulations had changed under Trump. The corporation indicated that the commercial rationale for focusing extensively on making electric vehicles, especially large ones, has “eroded.
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