Ford raises prices of Mexico-made cars due to tariffs

Detroit — Ford Motor is hiking prices on three of its Mexico-produced models, becoming one of the first major carmakers to adjust prices after US President Donald Trump’s tariffs.

Prices on the Mustang Mach-E electric SUV, Maverick bakkie and Bronco Sport will increase by as much as $2,000 on some models, according to a notice sent to dealers.

Ford’s decision to hike prices comes just days after it said the effects of Trump’s trade war would add about $2.5bn in overall costs for 2025, and as it suspended its annual earnings guidance.

Rival GM also said tariffs would cost it billions of dollars after the hefty levies imposed by Trump on imports of vehicles.

A Ford spokesperson said the price hikes would affect vehicles built after May 2 and due to arrive at dealers in late June.

The price hikes reflected “usual” midyear pricing actions, they said, “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 motoring sector, as major carmakers in the US and Europe have pulled forecasts, shifted production and caused companies to idle plants.

After weeks of pushback from the vehicle industry, Trump softened his tariffs on foreign auto parts imports to give carmakers credits for what is produced in the US and to avoid double tariffs on raw materials used in vehicle production. However, the White House has not rescinded a 25% tariff on the 8-million vehicles the US imports annually.

Analysts have said US vehicle sales could drop by more than 1-million a year if tariffs were to remain in place.

Reuters