When the “Detroit Three” automakers do well, their factory workers do well. Many of those workers count on a yearly “profit-sharing” check. But with tariffs cutting into automakers’ bottom lines, factory workers’ profit-sharing checks are shrinking to the smallest they’ve been in 10 years.

Per an agreement with the UAW, Ford workers get $1,000 for every $1 billion Ford makes. Last year, Ford’s workers enjoyed an average profit-sharing check of $10,416. For 2025, that could plummet as low as $3,000 — depending on how much tariffs hurt the company, according to Ford Authority.

Detroit factory workers are watching their profit-sharing checks evaporate

While this year’s checks were recently on track for an average of $9,176, the automaker just told investors it’s shelling out $2 billion toward tariffs. Building and selling cars is a business with shockingly narrow margins, and that $2 billion is much of what Ford was hoping to re-invest and distribute to workers this year. Ford just opened a $3 billion line of credit with JPMorgan Chase to keep the lights on.

NPR reports these tariffs on imported aluminum and steel are hitting the automotive industry hard. I’ll add that every car requires hundreds of computer chips, many of which are too complex for U.S. manufacturing. Automakers must import certain components. For now, automakers are keeping car prices steady and letting the extra taxes eat away profits.

In the past few months, GM admitted $1.1 billion in losses. Stellantis — parent company of Chrysler, Dodge, Jeep, and Ram — expects to put $1.7 billion into tariffs. Erin Keating, executive analyst for Cox Automotive, told NPR, “For a majority of the automakers, they’re really taking the tariffs on the chin.” But of course they’ll have to increase car prices eventually.

Stellantis is quick to blame its current financial situation on tariffs. The truth is the third Detroit automaker was struggling last year. On Feb. 26, its factory workers balked at its projected $3,780 profit-sharing checks for the 2024 year. That was down 73% year-over-year. Workers got an average of $13,860 for 2023.

Where does the tariff money go?

As of July, the U.S. federal government has pocketed $150 billion from “customs and certain excise taxes” in 2025. That’s pocket change compared to the $2.4 trillion in personal income tax it makes yearly, so President Trump’s speculation that tariffs could replace income tax isn’t realistic.

How will President Trump spend the tariff income? He said, “The big thing we want to do is pay down debt.” The U.S. national debt is $36.93 trillion — which we owe to domestic banks, Japan, China, and other countries. Our current interest payment is about $880 billion annually.

President Trump has said if any tariff money is left, “A little rebate for people of a certain income level might be really nice.” A bill introduced by a Republican in the Senate would give taxpayers a $600 rebate. With 153.8 million income taxpayers, that would cost at least $92 billion. But I doubt factory workers watching their profit-sharing checks drop $7,000 will care much about a $600 rebate.