Ford Motor Company has decided to raise prices on three models manufactured in Mexico, starting May 2. This makes them one of the initial large automakers to revise their pricing in response to President Trump’s tariffs.
The price increase for models like the Mustang Mach-E Electric SUVs, Maverick Pickups, and Bronco Sports could be as much as $2,000 for certain versions, based on a dealer notification seen by Reuters.
This week, Ford mentioned that the ongoing trade conflict would result in approximately $2.5 billion in costs by 2025, though they anticipate reducing those costs by about $1 billion.
A Ford representative noted that the price adjustments will impact vehicles built after May 2, with the new models arriving at dealerships around late June. They characterized the increase as reflective of typical pricing behavior for the industry.
In contrast, General Motors is likely to mitigate last week’s tariffs—estimated between $4 billion and $5 billion—primarily on imported vehicles, but they expect to offset that by at least 30%.
On Wednesday, Ford’s stock dipped by less than 1%. The company has been running discount promotions on several models over the July 4th weekend, according to the spokesperson.
The dynamics created by Trump’s tariffs have cast a shadow of uncertainty over the automotive industry, prompting major American and European manufacturers to adjust projections, tweak production schedules, and temporarily halt operations at some plants.
After considerable resistance from the industry, Trump relaxed some tariffs on foreign auto parts and acknowledged the efforts of U.S. manufacturers, while avoiding additional complications from the raw materials required for vehicle production.
Nevertheless, the White House has not retracted its 25% tariff applied to the 8 million vehicles imported into the U.S. each year.
Analysts predict that U.S. car sales could drop by over a million units annually if the tariffs remain in place long-term.
Ford enjoys a relatively favorable position compared to some competitors due to its robust manufacturing presence within the U.S., with about 79% of its vehicles sold domestically assembled, compared to just 53% for GM.
However, the company does import the Maverick, one of its more affordable and popular models, from Mexico, highlighting the challenges for major U.S. automakers facing rising costs for less expensive models produced domestically.
Both Ford and GM are contending with significant tariffs on imports from China and South Korea, respectively. GM has estimated that its import costs from South Korea reach around $2 billion, while Ford has not disclosed specific costs associated with vehicles imported from China.
