Consumers Will Pay More for Several Ford Vehicles Due to Tariffs

After months of speculation, new car prices are beginning to tick up due to tariffs. Ford Motor has just announced higher sticker prices on models it produces in Mexico.

According to Reuters, consumers will have to pay about $2,000 more for some models of Ford’s Mustang Mach-E SUV, Maverick pickup, and Bronco Sport. Vehicles produced after May 2, which will hit dealer lots late next month, will be subject to the new pricing.

Price modifications in the middle of the year are not out of the ordinary for Ford, but tariffs are certainly influencing its pricing strategies. However, per a Ford spokesperson, “We have not passed on the full cost of tariffs to our customers.”

The price adjustment comes just days after Ford warned investors that it expects $2.5 billion in tariff-related expenses this year. The company hopes to offset about $1 billion of the costs through price and volume adjustments, which looks to be starting with the price increases on the three Mexico-made models.

Rival Detroit automaker, General Motors, announced last week that Trump’s tariffs will cost the company between $4 billion and $5 billion, per CNN. However, GM’s CEO, Mary Barra, said there are no plans to raise prices on new vehicles.

Ford and Others in the Automotive Industry Are Dealing With Tariffs

In its most recent earnings report, Ford revealed a 5% drop in revenue during the first quarter of 2025. The automaker’s profit dropped significantly as well, falling from $1.33 billion in Q1 2024 to $471 million in the most recent three-month period.

Soon after releasing the disappointing figures, Ford rescinded its 2025 annual guidance, according to AP News. Citing uncertainties related to higher tariffs, potential production delays, and supply chain disruptions, the company intends to reevaluate before issuing a new outlook.

Overall, the automotive industry has been reeling ever since President Donald Trump announced new tariffs on vehicles and parts entering the U.S. While the president remains committed to bringing vehicle manufacturing back to America, he recently initiated executive orders that eased some of the prior tariff fees, giving car makers some reprieve as they make necessary adjustments.

As it stands, automotive companies are dealing with 25% tariffs on imported vehicles and parts. Unless current tariff policy changes, about 1 million fewer vehicles will be sold in the U.S. this year, according to industry experts.