Will Ford’s $900 Million Surprise Tariff Bill Make Your Next F-150 More Expensive?
In late December, Ford had an unexpected conversation with the Trump Administration. It figured its tariff bill for 2025 would be around $400 million. But according to officials, Ford owed the government $900 million.
The confusion stemmed from a tariff relief measure the administration had offered the auto industry. Ford thought the tariff exemption extended to all parts it had imported, starting in May 2025. The administration insisted Ford still owed tariffs on any parts it had imported before November 2025.
Ford’s rough tariff year
This was a rough way to cap off a difficult financial year. A fire destroyed the New York aluminum mill that supplies F-150 parts, leaving Ford with no option but to import foreign aluminum. The fire cost the automaker another $2 billion. So does this mean your next F-150 is guaranteed to cost even more? Maybe not.
During Trump’s first administration, he threatened a 25% tariff on Chinese-built cars. Buick asked for an exemption for its Chinese-built Envision crossover. President Trump refused. When the tariff finally went into effect, General Motors swallowed the added cost, keeping the Buick Envision’s MSRP the same. Automakers that import some models may try to spread tariff costs across their entire lineup instead of increasing the price tag on certain foreign-built cars. And Ford’s still profiting on the F-150.
Ford is “seeing our profitability improve”
The Trump administration recently announced it wouldn’t enforce cash penalties for automakers that failed to meet emissions regulations. The regulations—requiring certain percentages of vehicles sold hit certain MPG targets—are still in effect. But like a police officer letting traffic push the speed limit, President Trump is allowing manufactures to slide by. Detroit has responded by building as many large SUVs and trucks as possible. This is because large trucks and SUVs cost drivers more and thus promise automakers higher profit margins.
CEO Jim Farley said, “We’re seeing our profitability improve…I’ve been here for five years as a CEO. I’m really looking forward to this year.”
All-in-all, it’s unlikely we’ll see the F-150’s price increase again. After all, the truck’s MSRP just jumped $8k in two years.
