Ford to Increase Prices on Three Mexico-Made Models: Report

Ford Motor Company has raised prices for three of its vehicles produced in Mexico, marking one of the first major carmakers to adjust sticker prices following U.S. President Donald Trump's tariffs on foreign imports. The new prices took effect on vehicles produced from May 2 onward. The price increases affect the Mustang Mach-E electric SUV, Maverick pick-up (a popular and affordable model), and Bronco Sport. Prices on some models are expected to rise by as much as $2,000. A Ford spokesperson confirmed that the vehicles with the price hike will be available at dealer lots by late June.

Ford has estimated that the ongoing trade war will add $2.5 billion in additional costs for 2025, though the company expects to reduce this exposure by approximately $1 billion. General Motors (GM) has similarly projected that tariffs will cost the company between $4 billion and $5 billion. However, GM expects to offset these costs by at least 30%. The tariffs imposed by the U.S. government have caused considerable uncertainty in the auto industry, leading many major carmakers, both in the U.S. and Europe, to adjust their forecasts, shift production strategies, and temporarily shut down plants.

After facing significant pushback from the auto industry, Trump’s administration softened its approach to tariffs on foreign auto parts. This revision allows carmakers to receive credits for U.S.-produced components and avoids double tariffs on raw materials used in the production process. Despite these changes, the White House has maintained the 25% tariff on the 8 million vehicles the U.S. imports annually.

Ford is better positioned than some of its competitors to absorb the impact of these tariffs due to its strong domestic manufacturing base. The Michigan-based company assembles 79% of its U.S.-sold vehicles within the U.S., compared to GM’s 53%. This allows Ford to mitigate some of the pricing pressures caused by the tariffs.

In addition to tariffs on foreign automobile imports, both Ford and GM are facing significant levies on imports from China and South Korea. GM estimates that it will incur about $2 billion in costs for its imports from Korea, while Ford has not provided specific figures for its imports from China. Automakers that rely on exports to the U.S. are feeling the pressure of increased pricing. More than a dozen major car manufacturers, including Toyota and GM, import at least 40% of the vehicles they sell in the U.S., with companies like Volkswagen and Hyundai importing more than 60%, according to 2024 data from S&P Global Mobility.

While Ford was one of the first major carmakers to raise prices, most other automakers had warned that price increases were forthcoming but had not yet taken that step. Porsche, for example, stated that it would need to raise its prices if tariffs remained in place. Audi, the U.S. brand of Volkswagen, also suggested potential price increases without providing further details. On the other hand, BMW is more optimistic about the tariff situation, expecting the U.S. car tariffs to decline starting in July, based on discussions with U.S. officials. This view contrasts with the assessments of many other automakers. Meanwhile, GM’s finance chief, Paul Jacobson, noted that the company was not expecting price increases in the immediate future, as they are confident about the current pricing environment.

Ford’s move to raise prices reflects the ongoing turbulence in the global automotive market, driven by trade policies and tariff implications, and highlights the broader struggles that automakers are facing as they adjust to shifting market conditions and increased costs.