- Ford has already booked a $1.3 billion tariff refund on its earnings report.
- GM expects to recover roughly $500 million through the new refund program.
- Stellantis is in line for about $469 million from the same refund process.
The cheque is in the mail, apparently, and Detroit is first in line. Washington has only just cracked open its tariff refund program, and already the country’s largest automakers are queueing up to claim back what they paid. For an administration that spent years insisting foreign governments footed the bill, the optics are not flattering.
Approximately $166 billion in tariffs, which were unlawfully imposed through the 1977 International Emergency Economic Powers Act (IEEPA), will be refunded to importers over the coming months. The refunds follow a February U.S. Supreme Court ruling that struck down parts of the tariff program, prompting companies to begin filing claims last week.
In its most recent earnings report, Ford said it expects to be refunded $1.3 billion and has already recorded the sum on its books for accounting purposes.
Read: Trump Said Tariffs Hit Foreign Countries, But The Refund Checks Are Going To US Importers
In addition to Ford, General Motors said it expects to recover roughly $500 million in import taxes it paid over the past year. However, like Ford, it has yet to receive this money and doesn’t know when the refunds will be dispersed. Stellantis also expects to receive roughly €400 million ($469 million).
It’s not just the Detroit Three that will benefit. Mercedes-Benz expects significant refunds, as does Volkswagen. However, speaking with Reuters, VW finance chief Arno Antlitz said any refund amount will be small compared to the annual €4 billion ($4.69 billion) in costs that the tariffs have added.
Across the industry, companies have begun logging these projected refunds as income, adding an estimated $2.3 billion to their quarterly results on paper, even though the cash has not yet arrived.
What Will Trump Think?
According to Ford’s chief financial officer, Sherry House, the car manufacturer has a fiduciary duty to file a lawsuit seeking a refund for the illegal tariffs to protect its shareholders. These tariffs can be refunded through the US Customs and Border Protection’s new Consolidated Administration and Processing of Entries (CAPE) system. Refunds will include interest, and most are expected to be issued within 60-90 days after the application is accepted.
While companies will no doubt welcome the refunds, they will have to tread lightly. Applying for reimbursement could invite political scrutiny, as companies risk backlash from the administration despite following legal channels to recover funds.
Last month, President Trump said he would “remember” those firms that don’t seek tariff refunds. As for those consumers who indirectly paid for the tariffs through price hikes, including across the car industry, they’ll receive absolutely nothing.
