A man from California has filed a lawsuit against Ford, alleging that the company intends to keep around $1.3 billion in profits related to tariffs while still charging customers higher prices for vehicles. The lawsuit describes this situation as an “unjust windfall.”
Jason Block, who resides in San Diego and purchased a 2025 Ford Mustang Mach-E in February, claims that Ford increased both prices and destination fees to offset tariffs imposed during President Trump’s administration, before those tariffs were recently annulled by the Supreme Court.
The lawsuit notes that Block paid a price that incorporated these tariff increases but has yet to receive any form of refund.
The legal action asserts that Ford stands to gain “adjusted EBIT benefits of $1.3 billion from IEEPA.” Despite this, the company continues to maintain “uniform pricing for the U.S. industry.”
Block’s complaint suggests that these statements indicate Ford’s intention to hold onto tariff-related benefits, rather than sharing them with consumers.
“If Ford retains IEEPA benefits while keeping the prices raised due to tariffs, they will end up enjoying a double recovery and unjust enrichment,” the complaint states.
Mr. Block aims to represent consumers nationally who have bought or leased new Ford vehicles following the tariff-induced price hikes.
A spokesperson for Ford mentioned they are currently reviewing the complaint. They added, “We now have a range of affordable vehicles and aim to continue this in a way that benefits our customers and dealers.”
Legal professionals have indicated that just the filing itself isn’t enough to predict the case’s outcome.
Bobby Taghavi, managing partner at Sweet James, pointed out, “Earnings Before Interest and Taxes (EBIT) profits do not directly translate to available cash.” He suggested that the investigation might delve into whether the claimed figures relate to gross refunds, economic benefits after offsets, or merely accounting adjustments.
Taghavi also noted that Ford might challenge whether the lawsuit can proceed as a class action, emphasizing that class certification is often a significant barrier in consumer lawsuits.
Ford is likely to argue that pricing discrepancies arise due to vehicle type, dealership practices, and individual customer situations, suggesting that these specific issues should take precedence over broader generalities.
While rebates may not be passed on to customers, they are anticipated to enhance Ford’s Blue and Pro segments, as noted in the company’s disclosure.
The lawsuit traces back to Trump’s 2025 Tariff Plan, which imposed significant import duties on products from Canada, Mexico, and China under the International Emergency Economic Powers Act.
Initially, hefty tariffs of 25% were set on most imports from Canada and Mexico, followed by 10% on Chinese goods in February 2025, which was later raised to 20%.
Ford was among several automakers warning that these tariffs would escalate costs. In May 2025, the company projected that the trade measures would impose about $1.5 billion in annual expenses, leading to price hikes on models built in Mexico, including the Bronco Sport and Mustang Mach-E.
The tariffs have had widespread effects within the auto industry, upsetting North American supply chains that depend on cross-border parts before assembly.
Analysts are estimating that these tariffs could inflate the prices of many imported vehicles by several thousand dollars, while major automakers such as General Motors, Stellantis, Toyota, and Volkswagen have all reported or forecasted tariff-related expenses mounting into the billions.
In total, global automakers are expected to face at least $35.4 billion in costs by March 2026, according to analysis from industry reports.
