Ford Motor Company will raise prices on several of its Mexico-manufactured models by up to 2,000 USD, responding to a 25% tariff implemented under President Donald Trump’s 2025 administration. The affected vehicles include the Maverick pickup truck, Bronco Sport SUV, and the Mustang Mach-E electric vehicle.
According to a dealer notice obtained by Reuters, the price adjustments will apply to vehicles produced after May 2, with pricing changes reflected in inventory arriving at U.S. dealerships by the end of June.
Tariffs Pressure Passed on to Consumers
Ford noted that the increases incorporate both routine annual pricing adjustments and tariff-related cost burdens. However, the company clarified that it is absorbing part of the financial impact rather than passing on the full cost to customers.
President Trump began enforcing elevated tariffs on vehicles and components from Mexico and China shortly after taking office in January 2025. The policy has triggered a significant cost surge in North America’s globally integrated automotive sector, leaving automakers scrambling for alternative strategies.
Ford Projects 2.5 Billion USD Loss
During its Q1 earnings call, Ford CEO Jim Farley stated that the company could have met its annual targets if not for the tariffs. He projected a loss of 2.5 billion USD, though Ford believes it can recover up to 1 billion USD through price hikes and internal cost-saving measures.
Supply Chain Realignment Pressure
Automakers like Ford, GM, Hyundai, and Stellantis, which have leveraged cross-border production with Mexico, may shift to U.S.-based manufacturing or adjust vehicle lineups if high tariffs persist.
EV Strategy at Risk
The Mustang Mach-E, a cornerstone of Ford’s electric vehicle strategy, may be priced out of eligibility for the IRA subsidy cap, potentially dampening demand in the EV market.
Policy Conflict with EV Expansion Goals
The Trump administration’s tariff and subsidy reforms run counter to Biden-era EV promotion policies, posing a major threat to nationwide electrification efforts. The U.S. auto industry is undergoing structural transformation, driven not only by technological evolution but also by political and trade policy shifts. Ford’s decision marks just the beginning, as more manufacturers are expected to adapt to the changing landscape.
