A California man has filed a proposed class-action lawsuit against Ford, alleging the automaker intends to retain a projected $1.3 billion tariff-related financial benefit while keeping the higher prices it charged customers. The lawsuit claims this would constitute an "unjust windfall."
Jason Bullock, a San Diego resident who purchased a 2025 Ford Mustang Mach-E in February, contends that Ford increased prices and destination fees to offset tariffs imposed under President Trump. These tariffs were later invalidated by the Supreme Court. According to the complaint, Bullock paid a price that reflected these tariff-driven increases and has not received any reimbursement.
The suit cites Ford's filings with the Securities and Exchange Commission, which indicate the company anticipates a "$1.3 billion adjusted EBIT benefit of IEEPA." The plaintiff alleges that Ford intends to keep this benefit rather than pass it on to consumers, who he claims are still paying "flat US industry pricing."
"If Ford retains the IEEPA benefit while also retaining the tariff-related price increases paid by consumers, Ford will receive a double recovery and unjust windfall," the complaint states. Bullock seeks to represent a nationwide class of consumers who bought or leased new Ford vehicles after the tariff-related price hikes took effect.
A Ford spokesperson stated that the company is reviewing the complaint and reaffirmed its commitment to offering affordable vehicles. "We have a lineup of affordable and accessible vehicles today and we’ll continue to act on that commitment in ways that make sense for customers and dealers," the spokesperson said.
Legal experts suggest that the lawsuit's success may hinge on further discovery. Bobby Taghavi, managing partner at Sweet James, noted that an Earnings Before Interest and Taxes (EBIT) benefit does not necessarily equate to available cash. He explained that discovery would likely focus on whether the $1.3 billion figure represents a gross refund, a net benefit after offsets, or an accounting adjustment. Taghavi also indicated that Ford would likely contest the case's progression as a class action, arguing that individual consumer pricing varied by vehicle, dealership, and customer, thus outweighing common issues.
Ford's disclosures suggest the expected refund, referred to as an "adjusted EBIT benefit," is slated to boost its Blue and Pro segments, rather than being returned to buyers. The tariffs in question were part of a trade policy that imposed sweeping import duties under the International Emergency Economic Powers Act on goods from Canada, Mexico, and China, enacted during the Trump administration. Initially, 25% tariffs were placed on most imports from Canada and Mexico, with a 10% tariff on Chinese goods, later increased to 20%. Ford had previously warned investors that these measures would increase costs, stating in May 2025 that the tariffs would cost the company approximately $1.5 billion for the year. In response, Ford announced price increases on models built in Mexico, including the Bronco Sport, Maverick, and Mustang Mach-E.
The tariffs significantly impacted the auto industry, disrupting North American supply chains and adding thousands of dollars to the cost of many imported vehicles. Major automakers, including General Motors, Stellantis, Toyota, and Volkswagen, reported billions of dollars in actual or projected tariff-related expenses. An analysis by Automotive News indicated that these duties cost global automakers at least $35.4 billion through March 2026.