A drone view shows the Ford plant in Cuautitlan Izcalli, Mexico January 30, 2025
Raquel Cunha | Reuters
Ford Motor is hiking prices on three of its Mexico-produced models effective May 2, becoming one of the first major automakers to adjust sticker prices following President Donald Trump’s tariffs.
Prices on the Mustang Mach-E electric SUV, Maverick pickup and Bronco Sport will increase by as much as $2,000 on some models, according to a notice sent to dealers reviewed by Reuters.
Ford’s decision to hike prices comes just days after it said the effects of Trump’s trade war would add about $2.5 billion in overall costs for 2025, and as it suspended its annual earnings guidance. Rival GM also said tariffs would cost it billions of dollars following the hefty levies imposed by Trump on foreign imports of automobiles.
A Ford spokesperson said the price hikes will affect vehicles built after May 2, which would arrive at dealer lots in 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.”
Trump’s tariffs have unleashed weeks of uncertainty across the auto sector, as major carmakers in the United States and Europe have pulled forecasts, shifted production and caused companies to idle plants.
Following weeks of pushback from the auto industry, Trump softened his tariffs on foreign auto parts imports to give carmakers credits for what is produced in the United States and to avoid double-tariffs on raw materials used in auto production. However, the White House has not rescinded a 25% tariff on the 8 million vehicles the United States imports annually.
Analysts have said U.S. auto sales could drop by more than 1 million vehicles a year if tariffs were to remain in place.
