Ford to receive $1.3 billion government refund for Trump’s IEEPA tariffs

Ford Motor announced on Wednesday that it anticipates receiving $1.3 billion in U.S. government refunds for tariffs that were deemed illegal by the Trump administration. This news comes as the Detroit automaker raised its annual guidance by $500 million, attributing the increase to the projected one-time tariff boost. The Supreme Court recently overturned tariffs imposed by President Trump last year under the International Emergency Economic Powers Act (IEEPA).

In response to the ruling, the federal government launched the Consolidated Administration and Processing of Entries (CAPE) portal on April 20. This portal allows importers to submit claims for refunds of IEEPA tariffs. Initially, businesses can only file claims for tariffs that were estimated and could still be amended, as well as those that were recently finalized by U.S. Customs and Border Patrol (CBP) officials. Legal experts suggest that approximately 15% of refund requests have been rejected since the launch of CAPE, mostly due to clerical errors.

CBP has assured businesses that eligible tariff refunds will be processed within 60 to 90 days of approval. The exact amount of Ford’s $1.3 billion refund remains unclear, as it is uncertain whether this figure represents the total IEEPA duties the company paid or only those initially eligible for a refund. Ford has yet to provide further clarification on this matter.

For the first quarter of the year, Ford reported a net income of $2.5 billion on revenue of $43.3 billion, marking a 6% increase from the previous year. The $1.3 billion tariff boost reflects the IEEPA levies that the company paid between March 2025 and February of this year.

As this development unfolds, Ford’s financial outlook appears promising with the anticipation of substantial tariff refunds. Stay tuned for more updates on this evolving story.

Edited by Alain Sherter

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