Ford Increases Prices on Three Models Amid Tariff Uncertainty

DETROIT, Michigan — Ford Motor Co. has raised prices on three of its vehicles produced in Mexico, becoming one of the first major automakers to do so following recent tariffs imposed by U.S. President Donald Trump. The price hikes, effective May 2, will affect the Mustang Mach-E electric SUV, Maverick pickup, and Bronco Sport, with increases reaching up to $2,000 on certain models, according to a dealer notice reviewed by Reuters.

A Ford spokesperson stated that the price increases will apply to vehicles manufactured after May 2, which are expected to reach dealer lots by late June. The spokesperson explained that these adjustments reflect “usual” mid-year pricing actions along with some tariffs that the company is facing. “We have not passed on the full cost of tariffs to our customers,” they added.

Ford’s stock was down 1.7% at $10.26 midday on the announcement. Despite these impacts, the automaker is running promotions through the July 4 weekend on many of its models.

The recent tariffs have caused a wave of uncertainty in the auto sector, prompting major automakers, including Ford and General Motors (GM), to revise their production plans and forecasts. Analysts have estimated that U.S. auto sales could decline by more than 1 million vehicles annually if the tariffs remain in effect.

Ford is in a better position to cope with these tariffs compared to some competitors, with Barclays analysts noting that 79% of its vehicles sold in the U.S. are manufactured domestically, in contrast to GM’s 53%. However, Ford still relies on imports for its popular Maverick model.

Both Ford and GM are facing significant levies on imports from foreign countries, including China and South Korea. GM has predicted that tariffs on its Korean imports could reach around $2 billion, while Ford has not disclosed similar figures for its Chinese imports.

With the challenges posed by tariffs, many major U.S. automakers have warned about impending price increases. Unlike Ford, rival Porsche has indicated that it may raise prices if tariffs persist, while BMW is optimistic about tariffs potentially decreasing starting in July.