Ford’s New Tariff Worsens Q4 Performance

Ford Motor has reported weaker-than-expected fourth-quarter earnings, including an unexpected move by the Trump administration that nearly doubled its hit from tariffs on imported auto components to $900 million.

The automaker posted an $11.1 billion quarterly loss, compared with a $1.8 billion profit a year earlier. (Photo: Ford Motor Company Facebook) 

But Ford’s 2026 outlook was solid, Al Root and Janet H. Cho reported for Barron’s Daily.

Trump officials told Ford in December that a tariff-relief program it announced in October would be retroactive only back to November, not back to May as expected.

The automaker posted an $11.1 billion quarterly loss, compared with a $1.8 billion profit a year earlier.

Ford had lobbied for the tariff-relief program that enabled automakers to apply for credits to offset tariffs on imported parts of US-made vehicles.

Ford was forced to import heavily tariffed aluminum for its F-Series trucks last year after fires sidelined a key aluminum factory in New York. Quarterly adjusted earnings of 13 cents a share were below Wall Street expectations.

Revenue of $45.9 billion fell 5% from the year-ago quarter but beat projections. CEO Jim Farley reported “significant progress” in lowering material and warranty costs and in improving quality.

Ford said in December that it expected to take a $19.5 billion charge to retrench as EV demand fell. For full-year 2025, Ford reported an $8.2 billion net loss, down from a $5.9 billion profit in 2024.

Revenue rose 1% to a higher-than-expected $187.3 billion. Ford expects 2026 operating profit of between $8 billion and $10 billion, basically in line with Wall Street expectations at the midpoint.

RBC analyst Tom Narayan expects a $1 billion improvement from 2025 as it recovers from the fires, along with organic improvement across Ford’s divisions.