Ford Motor Co. is increasing prices on its Mexico-built vehicles by as much as $2,000, becoming one of the first automakers to announce a price hike because of tariffs.
Changes on dealer invoices became effective May 2 on the Maverick small pickup, Bronco Sport SUV and Mustang Mach-E all-electric crossover, according to the memo obtained by The Detroit News. That means affected vehicle will arrive on dealership lots in late June, the company confirmed.
Ford previously had communicated price increases could be coming on May production in the absence of material changes on tariff policy.
But Trump last week announced changes to his auto tariffs, preventing certain duties from stacking on top of them and offering credits on imported parts for manufacturers assembling vehicles in the United States. Still, 25% import taxes on more than 100 categories of auto parts, from engines and steering wheels to hinges and more began being collected on Saturday after a 25% levy on imported vehicles took effect in early April. Ford this week estimated it’s exposed to $2.5 billion in tariff costs in 2025, but expects to offset about $1 billion of that.
Analysts have warned that automakers won’t be able to absorb all of the costs created by tariffs, and it will result in price increases for U.S. consumers, which could affect demand and production of new vehicles. The East Lansing-based Anderson Economic Group has projected price increases from $2,000 to $15,000 per vehicle.