WASHINGTON (dpa-AFX) - Ford Motor Co. is increasing prices on three of its Mexico-manufactured vehicles, Mustang Mach-E, Maverick, and Bronco Sport-by up to $2,000, citing a combination of routine pricing updates and the financial impact of U.S. tariffs on imported automobiles.
The new pricing, which takes effect for vehicles built after May 2, comes as automakers brace for rising trade-related costs under President Donald Trump's tariff policies.
The price adjustments range from $600 to $2,000, depending on the model and configuration, and will apply to vehicles arriving at dealerships starting in late June. Existing inventory will remain unaffected. Ford clarified that while the tariffs have increased production costs, the company has opted not to pass the full burden onto consumers.
According to the automaker, it expects tariffs to add approximately $2.5 billion in costs this year, though it aims to offset around $1 billion. Ford continues to offer promotional 'employee pricing' through the July 4 holiday, and says its current inventory produced before the tariffs took effect should meet near-term demand.
The broader industry remains on edge as automakers reassess pricing strategies and production plans. General Motors recently estimated tariffs would cost it between $4 billion and $5 billion, while other manufacturers, including Toyota and Volkswagen, are considering similar pricing changes.
Ford, which assembles nearly 80 percent of its U.S.-sold vehicles domestically, is better positioned than some competitors. Still, key models like the Maverick and Bronco Sport are built in Mexico, exposing them to increased import costs.
The company's price hike marks one of the earliest signals that the financial strain of trade policy is beginning to reach consumers.
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