A memo sent to dealers on Wednesday reviewed by Reuters said Ford Motor could raise prices for new vehicles if President Trump’s car rates continue.
The Dearborn, Michigan automaker offered deep discounts across the lineup, starting on June 2nd earlier this month. The program will continue, but pricing for new models created after May may change, the memo says.
Automotive News first reported the news of the memo.
“Customers have many options and plenty of stock to choose from until June 2. The tariff situation is dynamic and we will continue to assess the potential impact of tariff actions,” a Ford spokesperson added that if prices for vehicles produced in May change, customers will not rise until early July.
Both US and foreign automakers are rushing to alleviate consumer concerns about increased rates at dealers by offering price guarantees and substantial discounts.
The short-term impact of tariffs has driven sales, but US automakers have personally warned lawmakers that if tariffs are in place, they will be forced to significantly raise prices.
“We expect that in the future, if there are no significant changes to customs policies that have been made clear to date, we will need to make adjustments to vehicle prices. This is expected to occur in production in May.”
Ford will not raise sticker prices for vehicles currently in stock at Ford and Lincoln dealers, the memo said.
An analysis released earlier this month by the Automotive Research Center revealed that Trump’s 25% tariff on car imports, conducted on April 3, would increase costs by US automakers by approximately $1008 billion in 2025.
Ford is one of the best automakers for weather tariffs as it produces around 80% of US vehicles sold domestically.
Earlier this week, Trump has raised the idea that he is considering changing auto-related tariffs, suggesting that he may already be granting tax exemptions.
