Ford Motor Company (NYSE: F) is raising the sticker prices for three of its U.S. models imported from Mexico by as much as $2,000 per vehicle. The move comes just days after company executives suggested that broad industry price hikes weren’t likely this year, highlighting how quickly the landscape can shift in the face of new tariffs and policy changes.
The affected vehicles, the Mustang Mach-E, Maverick pickup, and Bronco Sport-make up a significant portion of Ford’s U.S. sales. In the first quarter alone, these models accounted for about 17% of the company’s U.S. volume. The price increases, which range from $600 to $2,000 depending on the model and trim, apply only to vehicles manufactured after May 2. Cars already on dealership lots or in transit aren’t subject to the new prices, so buyers looking for a deal may want to act quickly before the new inventory arrives in late June.
Ford attributes the price hikes to a combination of routine mid-year adjustments and the impact of recently imposed U.S. tariffs on imported vehicles. Since April 3, imported cars have faced tariffs of up to 25%, a policy shift that’s hitting automakers with cross-border supply chains particularly hard.
A Ford spokesperson explained, “This reflects our typical mid-year pricing adjustments combined with the tariffs we are encountering. We have not transferred the entire burden of the tariffs to our customers. Our strategy throughout this changing landscape remains focused on doing what is best for our customers and our business”.
Ford isn’t alone in dealing with the fallout from new tariffs, but it’s among the first major automakers to make public price adjustments. The company estimates that tariffs will add about $2.5 billion in costs for 2025, though it expects to reduce that exposure by roughly $1 billion through various measures. Even so, Ford expects a $1.5 billion hit to its operating profit this year and has withdrawn its full-year financial guidance due to the uncertainty created by ongoing trade disputes.
For car buyers, these tariffs could mean higher prices across the board, not just for Ford vehicles. According to the Anderson Economic Group, tariffs and related trade tensions could raise the price of some imported cars by $2,000 to $12,000, depending on the model and where it’s built. For example, the Mustang Mach-E, which is made in Mexico, faces tariffs of more than $12,000, while a domestically produced Ford Explorer faces levies of about $2,400.
Despite the price hikes, Ford is still offering employee pricing on these models through July 4 as part of its “From America, For America” campaign. The company is also providing incentives on its electric vehicles, such as a free Level 2 home charger with any new EV purchase or lease, which includes the F-150 Lightning, Mustang Mach-E, and E-Transit van. These efforts signal Ford’s intent to keep its products attractive to consumers even as costs rise.
It’s worth noting that, compared to some competitors, Ford may be less exposed to tariff pressures. The company imports about 21% of its U.S. vehicle lineup, while rivals like General Motors import closer to 46%. Still, any increase in sticker prices is likely to be noticed by consumers, especially in a market where affordability is already a concern.
For now, the price increases are limited to the three Mexico-built models and only affect vehicles produced after May 2. Meanwhile, Ford and other automakers will be watching closely to see how tariffs and trade policies evolve in the coming months, and how those changes might affect both their bottom lines and the prices consumers pay.
