Ford is increasing prices by up to $2,000 on the Mustang Mach-E, Maverick, and Bronco Sport, all produced in Mexico.
The company attributes the price hikes to routine adjustments and the impact of new U.S. tariffs.
Ford expects tariffs to add $2.5 billion to its 2025 costs but plans to offset about $1 billion of that amount.
According to a published report, Ford is implementing price increases of up to $2,000 on three of its vehicles manufactured in Mexico—the Mustang Mach-E SUV, Maverick pickup, and Bronco Sport—effective May 2. Reuters reports the company cites the recent U.S. tariffs introduced by President Trump as a contributing factor to this decision.
Ford reportedly describes the hikes as part of routine mid-year pricing adjustments, it acknowledges that the tariffs have influenced the move.
The price adjustments will apply to vehicles built after May 2, which are expected to arrive at U.S. dealerships by late June. Ford anticipates that the tariffs will add approximately $2.5 billion to its costs in 2025, though the company aims to mitigate about $1 billion of that increase.
Despite these challenges, Ford maintains that it has not passed the full cost of the tariffs onto customers, according to the report.
Ford's decision comes in the wake of President Trump's imposition of a 25% tariff on 8 million imported vehicles annually, a move that has introduced significant uncertainty across the auto industry. Analysts warn that these tariffs could potentially reduce U.S. auto sales by over a million units per year.
Relatively better position than GM
In comparison to some competitors, Ford is relatively better positioned to weather the impact of these tariffs, as it assembles 79% of its U.S.-sold vehicles domestically. However, models like the Maverick, which are imported from Mexico, remain vulnerable to increased costs.
Rival automaker General Motors, which assembles only 53% of its U.S.-sold vehicles domestically, estimates that the tariffs could cost it between $4 billion and $5 billion.
The broader auto industry is grappling with the implications of these trade policies, with many companies reevaluating production strategies and forecasting potential shifts in consumer demand. As the situation evolves, automakers are closely monitoring policy developments and adjusting their operations accordingly.
Cox Automotive reports new car sales rose significantly in April ahead of the tariffs. It also said wholesale used car values rose sharply last month due to anticipated heavy demand.