Key Points
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The U.S. Supreme Court recently struck down certain tariffs imposed by former President Trump, which were justified under the International Emergency Economic Powers Act (IEEPA).
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Ford Motor Company lost approximately $2 billion in profits and General Motors lost $3.1 billion in earnings due to these tariffs in 2025.
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Ford reported an overall loss of $8.2 billion, while GM’s earnings fell to $2.7 billion, more than 50% lower than 2024.
Despite these financial setbacks, automotive stocks like Ford and GM saw significant gains in 2025, with Ford shares rising 35% and GM’s increasing by 55%. While the Supreme Court’s ruling removes some tariffs, significant tariffs, including a 25% levy on imported automobiles, remain in effect, potentially continuing to impact profits.
A new 10% Section 122 tariff, which started recently, specifically exempts automobiles and auto parts, indicating a temporary reprieve for the industry. For now, the existing 25% tariff remains the main concern for investors in automotive stocks as they navigate ongoing challenges in 2026.
