Ford Motor Company is set to raise prices on its three models manufactured in Mexico, a direct response to the tariffs imposed by the Trump administration on imported vehicles. This price adjustment comes just days after Ford executives indicated they did not anticipate significant increases in car prices across the industry for the year.
According to a memo sent to Ford dealerships and reported by Reuters, the price hikes will affect the Bronco Sport, Maverick pickup, and Mustang Mach-E electric SUV, with increases ranging from $600 to $2,000 per vehicle. The new prices will take effect for vehicles built after May 2, 2025, and are expected to arrive at dealership lots in late June.
Ford spokesman Said Deep emphasized that these price adjustments are part of the company’s "usual mid-year pricing actions combined with some tariffs we are facing." He also noted, "We have not passed on the full cost of tariffs to our customers," indicating that Ford is absorbing some of the additional costs rather than transferring them entirely to consumers.
The recent tariff, which is set at 25% on imported vehicles and auto parts, has created significant pressure on car manufacturers, including Ford. Economists project that these tariffs could increase the cost of imported vehicles by anywhere from $2,000 to $15,000, depending on the model. This has raised concerns that the overall price of vehicles for consumers will rise sharply.
On May 5, 2025, Ford announced that it expects the tariffs will reduce its profits by approximately $1.5 billion for the year. The company also withdrew its full-year financial guidance due to the uncertainty created by these trade policies, which have affected its operations and financial outlook.
Despite the challenges posed by tariffs, Ford is in a relatively strong position compared to some competitors, as most of its vehicles are manufactured in the United States. However, the three models affected by the price increase—the Mustang Mach-E, Maverick, and Bronco Sport—are produced in Mexico, which makes them susceptible to the tariffs.
Ford’s price hike comes amid a broader trend within the auto industry, where manufacturers have been slow to adjust prices in response to the tariffs. This is notable given that the automotive sector has generally supported the tariff measures, yet the reality of increased costs is now becoming apparent.
Deep reiterated that the price hikes do not apply to vehicles currently on dealership lots or those already in transit, which means customers can still purchase existing inventory at the previous prices. The company is also extending its promotional employee pricing program, dubbed "From America, For America," through July 4, 2025, allowing buyers to benefit from discounts even after the price adjustments.
Ford’s decision to raise prices reflects the growing impact of the tariffs on the automotive market. The company’s models that are produced in Mexico accounted for about 17% of its U.S. sales in the first quarter of 2025, making it a significant segment of their business.
As the automotive industry grapples with the implications of these tariffs, other manufacturers are also bracing for potential impacts. General Motors has indicated it is preparing for similar challenges as the tariffs affect the cost of production and sales strategies.
Industry experts warn that the higher tariffs, coupled with retaliatory measures from other countries, could lead to substantial price increases for consumers, which may deter potential buyers and impact overall sales in the market.
In light of these developments, Ford’s pricing strategy appears to be a balancing act—attempting to manage costs while remaining competitive in a challenging market environment. As the situation evolves, it will be crucial for consumers and industry stakeholders to stay informed about how these changes will affect vehicle prices and availability.
Overall, the implications of the tariffs on the automotive industry are significant, and Ford’s response is just one example of how manufacturers are adapting to a rapidly changing economic landscape. The coming months will be critical as the effects of these tariffs unfold, and consumers will need to navigate a market that may see increased prices and limited options.
