Ford Motor will raise prices on three of its key Mexico-produced vehicles beginning May 2, becoming one of the first major automakers to respond to US President Donald Trump’s latest round of tariffs.
According to a notice received by Reuters, specific models of the Mustang Mach-E electric SUV, the Maverick compact truck, and the Bronco Sport SUV will be priced up to $2,000 more.
The price modifications come as the manufacturer anticipates an additional $2.5 billion in expenditures in 2025 due to Trump’s trade conflict.
The company recently delayed its annual earnings guidance, citing the uncertainty of ongoing tariff measures.
General Motors has also warned that tariffs on foreign-made automobiles and components will have a multibillion-dollar impact.
A Ford spokeswoman confirmed that the increased pricing will apply only to vehicles made after May 2, which are slated to reach dealerships by late June.
The spokesperson said the price hikes reflect “usual” mid-year pricing actions, combined with some tariffs we are facing.
We have not passed on the full cost of tariffs to our customers.”
The auto industry faces growing trade pressures
Ford’s action demonstrates how trade policy impacts the car sector.
Trump’s tariffs have disrupted supply networks, leading US and European automakers to adjust production schedules, postpone financial guidance, and close manufacturing units.
The administration has left a 25 per cent tariff on annual imports of about 8 million vehicles entering the US, while tweaking some of the tariff structures, for example, by providing credits for US-made auto parts, and suspending double-dipping tariffs on raw materials.
This has put further strain on manufacturers who use global production systems.
To balance costs and optimise supply chains, vehicles such as the Mach-E and Bronco Sport are manufactured in Mexico.
Tariffs on these imports have a direct impact on pricing tactics, margins, and, eventually, consumer demand.
Analysts say that sales may fall off
Industry analysts warn that long-term tariffs could have negative consequences.
If present trade obstacles prevail, US auto sales are expected to decrease by almost 1 million automobiles annually.
This has created challenges for automaker financial planning, combining higher costs with a reduced pricing buffer.
In this scenario, Ford’s decision to modify prices may presage broader industry changes as manufacturers assess the cost of compliance against the danger of losing market share.
As part of the market’s reaction, Ford Motor Company traded at $10.41 on Wednesday, May 7th, down $0.04 or 0.34 per cent from the previous trading session.
Looking back, Ford Motor has lost 19.93 per cent in the last four weeks. Its price has dropped 14.39% over the last year.
Carmakers walk a fine line
The statement seems to be an effort to find a middle ground between transparency and market reassurance.
Although the price hikes were partly due to tariffs, the company said it attempted to absorb as much of the cost as possible to soften the blow on consumers.
It is part of a wider strategy at car companies to incur some extra costs for the sake of staying competitive in a tricky market.
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