Ford Motor Company said Wednesday it expects to recover about $1.3 billion in tariff refunds after a major U.S. government policy reversal, giving the company a significant financial boost this year.
The refund stems from tariffs previously imposed under the International Emergency Economic Powers Act (IEEPA), which were struck down by the US Supreme Court in February.
The court ruled that the tariffs, introduced during the administration of Donald Trump, were not legally valid.
Ford said the refund will act as a one-time gain, helping raise its annual outlook by $500 million.
The company already included the benefit in its first-quarter results, reporting net income of $2.5 billion on revenue of $43.3 billion, a 6% increase compared to last year, CBS News reported.
To process refunds, the government launched a new online system called the Consolidated Administration and Processing of Entries (CAPE) portal on April 20.
This system allows businesses to submit claims for tariffs paid under the invalidated policy. Refunds are expected to be issued within 60 to 90 days after approval by US Customs and Border Protection.
Ford raises 2026 guidance as $1.3 billion tariff refund assists in offsetting higher costs https://t.co/qNONvj07RJ
— CNBC (@CNBC) April 29, 2026
Ford Refund Claims Face Early Setbacks
However, not all claims have gone through smoothly. About 15% of submissions have been rejected so far, mostly due to simple paperwork errors, according to legal experts.
Right now, companies can only file claims for certain tariffs that are still open for adjustments or were recently finalized.
According to BusinessInsider, it remains unclear whether Ford's $1.3 billion reflects the full amount it paid under the tariffs or only the portion currently eligible for refund. The company has not provided further clarification.
The refund covers duties paid between March 2025 and February 2026. While this financial boost helped lift profits, Ford's core business showed mixed results. Wholesale vehicle volumes dropped 4% even as revenue climbed.
Ford's update comes shortly after General Motors reported it expects about $500 million in similar tariff-related benefits.
Despite this positive development, challenges remain. Automakers are still dealing with other tariffs, including a 25% duty on vehicles and parts under a separate trade law. Ford estimates these ongoing costs could reach about $1 billion this year.
Originally published on vcpost.com
