Ford is set to increase prices on several models produced in Mexico, including the highly anticipated Mustang Mach-E, in response to new tariffs imposed by former President Trump.
The company has confirmed that this price adjustment is part of its routine mid-year pricing actions, compounded by the financial pressures from the tariffs.
A spokesperson for Ford has noted that these price increases will not affect vehicles currently in transit to dealerships, with adjustments coming into effect for imported models after May 2.
Ford Implements Employee Pricing as Tariff Impact Looms Over Automaker
Despite the looming financial impact expected to cost Ford approximately $2.5 billion this year, the automaker has stated that it has not passed the full expense of these tariffs onto consumers. Specific price hikes include a $600 increase for the Bronco Sport Heritage and a $700 rise for the Maverick XLT AWD.
In contrast to its larger rival General Motors, which imports about 46% of its vehicles sold in the U.S., Ford imports around 21%. This lower percentage suggests that Ford may be less affected by the tariffs compared to GM, which anticipates its costs related to the tariffs could range between $4 billion and $5 billion for the year.
As a response to its pricing changes, Ford is rolling out employee pricing on all impacted models through July 4, as part of its “From America, For America” campaign. Additionally, the company is promoting its “Power Promise” initiative, which includes a free Level 2 home charger with the purchase or lease of any electric vehicle, alongside benefits such as 24/7 live EV support and an extensive battery warranty.
Given the continuing uncertainty surrounding the tariffs, Ford, much like GM, has opted to withdraw its financial guidance. This increased instability in the automotive market may lead to additional price adjustments in the near future.