Ford Motor has announced a price increase on several models produced in Mexico, attributing the hike to the recent US tariffs, reported Reuters.
The affected vehicles include the Mustang Mach-E electric SUV, Maverick pickup, and Bronco Sport, with increases up to $2,000 on some models.
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This move makes Ford one of the first major automakers to adjust prices in response to the tariffs imposed by US President Donald Trump.
The price adjustments were communicated to dealers in a notice, which indicated that the new prices would apply to vehicles built after 2 May and arriving at dealerships by late June.
A Ford spokesperson explained that the price hikes are a result of “usual” mid-year pricing actions combined with the tariffs. They emphasised that the full cost of the tariffs has not been passed on to customers.
Ford’s announcement comes in the wake of the company’s statement earlier in the week, estimating that Trump’s trade war would add about $2.5bn in costs for 2025.
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By GlobalDataRival General Motors also acknowledged the financial impact of tariffs, projecting costs between $4bn and $5bn, with plans to mitigate at least 30% of that.
Despite the price increases, Ford shares dropped 1.7% to $10.26 by midday.
The company continues to offer a discount programme through the 4 July weekend on many models.
The White House has eased some tariff conditions, allowing credits for US-produced auto parts and avoiding double tariffs on raw materials.
However, a 25% tariff on the eight million vehicles imported annually to the US remains unchanged.
Analysts predict that US auto sales could fall by over one million vehicles per year if these tariffs persist.
Ford’s strong US manufacturing base, with 79% of its US-sold vehicles assembled domestically, places it in a more favourable position compared to competitors like GM, which assembles 53% domestically.
Nevertheless, Ford still imports popular models like the Maverick from Mexico, and along with GM, faces significant tariffs on imports from China and South Korea.
Major companies, including Toyota and Hyundai Motor, import a significant portion of their US-sold vehicles, with some exceeding 60%.
Prior to Ford’s pricing adjustments, other automakers had hinted at potential increases, with Porsche and Audi expressing concerns over the tariffs.
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