Ford Motor Co. said during its fourth-quarter earnings call that a late change to the Trump administration’s tariff-relief program added about $900 million more in costs than the company had expected in 2025.
Chief Financial Officer Sherry House told investors that the company learned in late December that tariff credits tied to imported parts would be retroactive only to November, rather than earlier in the year as the automaker had thought. That adjustment significantly reduced the amount of relief Ford expected to receive.
As a result, Ford’s total tariff costs in 2025 reached roughly $2 billion, compared with earlier expectations of closer to $1.1 billion. The late change effectively nearly doubled the company’s tariff bill for the year.
House said the company was informed of the revised application of the relief program very late in the year, leaving no time to adjust planning or offset the additional costs.
The disclosure came as part of Ford’s larger earnings results, which included other charges. Executives, however, made clear that the unexpected tariff change alone represented a substantial unplanned expense.
In October, Ford executives signaled that shifting trade policy details were creating uncertainty about projected tariff costs. At the time, company leaders said late administrative adjustments could materially affect the amount of relief automakers ultimately received. The latest earnings report confirmed that concern.
