Iconic US automaker hikes prices on Mexico-built vehicles

By BEN SHIMKUS, US CONSUMER REPORTER

Published: | Updated:

Ford Motor, is hiking prices on three of its Mexico-produced models effective May 2, becoming one of the first major automakers to adjust sticker prices following US President Donald Trump 's tariffs. Prices on the Mustang Mach-E electric SUV, Maverick pickup and Bronco Sport will increase by as much as $2,000 on some models, according to a notice sent to dealers reviewed by Reuters.

Ford Motor, is hiking prices on three of its Mexico-produced models effective May 2, becoming one of the first major automakers to adjust sticker prices following US President Donald Trump 's tariffs. Prices on the Mustang Mach-E electric SUV, Maverick pickup and Bronco Sport will increase by as much as $2,000 on some models, according to a notice sent to dealers reviewed by Reuters.

The move comes days after the automaker announced it expects to pay $2.5 billion in tariffs to the federal government over the next year thanks to President Donald Trump’s new levies on imported vehicles and foreign-made parts. Consumer advocates have warned tariffs will increase new vehicle and insurance costs , but until now car companies have been vague about the impact on price. That changed this week, as Ford broke down the projected impact during its earnings report — offering one of the clearest glimpses yet at how much of that burden could fall on buyers.

The move comes days after the automaker announced it expects to pay $2.5 billion in tariffs to the federal government over the next year thanks to President Donald Trump’s new levies on imported vehicles and foreign-made parts. Consumer advocates have warned tariffs will increase new vehicle and insurance costs , but until now car companies have been vague about the impact on price. That changed this week, as Ford broke down the projected impact during its earnings report — offering one of the clearest glimpses yet at how much of that burden could fall on buyers.

The company says it plans to offset around $1 billion of the tariff costs through accounting changes and adjustments to vehicle pricing. Spread across the 2.08 million vehicles Ford sold in the US last year, DailyMail.com calculates buyers can expect around $480 tacked onto the price of each car. That ballpark figure will vary depending depending on the model, its supply chain, and further policy changes from the White House.

The company says it plans to offset around $1 billion of the tariff costs through accounting changes and adjustments to vehicle pricing. Spread across the 2.08 million vehicles Ford sold in the US last year, DailyMail.com calculates buyers can expect around $480 tacked onto the price of each car. That ballpark figure will vary depending depending on the model, its supply chain, and further policy changes from the White House.

But the message is clear: some of the added cost is expected to land on buyers, even for some of the most American-made cars on the planet. Ford says the remaining $1.5 billion in tariffs will be absorbed by the company itself, cutting into profits. The automaker pulled its 2025 financial guidance this week, citing policy uncertainty and the risk of supply chain disruptions.

But the message is clear: some of the added cost is expected to land on buyers, even for some of the most American-made cars on the planet. Ford says the remaining $1.5 billion in tariffs will be absorbed by the company itself, cutting into profits. The automaker pulled its 2025 financial guidance this week, citing policy uncertainty and the risk of supply chain disruptions.

'There's a number of things that we are working through,' Ford's CFO, Sherry House, said during the earnings call, noting potential impacts from both customer behavior and regulatory shifts. 'It’s the policy issues that we had alluded to — the clarification of how some of these are landing, as well as some uncertainty associated with tax and emission policy.' Despite the high tariff price, Ford appears to bein a stronger position than its competitors.

'There's a number of things that we are working through,' Ford's CFO, Sherry House, said during the earnings call, noting potential impacts from both customer behavior and regulatory shifts. 'It’s the policy issues that we had alluded to — the clarification of how some of these are landing, as well as some uncertainty associated with tax and emission policy.' Despite the high tariff price, Ford appears to bein a stronger position than its competitors.

More than 80 percent of the vehicles it sells in the US are assembled domestically, in plants across Michigan, Missouri, Kentucky, and Ohio. That keeps its exposure to vehicle import tariffs lower than rivals like General Motors, which recently said it expects to face $4 billion to $5 billion in tariff-related costs. Ford has highlighted its American production advantage by offering a massive sales event: it's offering employee pricing to all US consumers until July 4 .

More than 80 percent of the vehicles it sells in the US are assembled domestically, in plants across Michigan, Missouri, Kentucky, and Ohio. That keeps its exposure to vehicle import tariffs lower than rivals like General Motors, which recently said it expects to face $4 billion to $5 billion in tariff-related costs. Ford has highlighted its American production advantage by offering a massive sales event: it's offering employee pricing to all US consumers until July 4 .

Still, Ford CEO Jim Farley has acknowledged the company’s dependence on foreign parts. In a recent interview, he pointed out the limited availability of components like fasteners and carpeting in the US. Ford purchases the parts from other manufacturers. They're individually subject to 25 percent tariffs under the current tax regime. Ford's foreign parts struggles highlight how automakers are still struggling to interpret the broader strategy behind the tariffs.

Still, Ford CEO Jim Farley has acknowledged the company’s dependence on foreign parts. In a recent interview, he pointed out the limited availability of components like fasteners and carpeting in the US. Ford purchases the parts from other manufacturers. They're individually subject to 25 percent tariffs under the current tax regime. Ford's foreign parts struggles highlight how automakers are still struggling to interpret the broader strategy behind the tariffs.

Trump has alternated between using them as leverage in trade negotiations and positioning them as a way to spur more domestic manufacturing. At the same time, he has criticized federal incentives for electric vehicle adoption — raising questions about what tools, if any, the government plans to use to support the industry. Many automakers have invested billions of dollars in US EV battery capacity , as global automakers prepare for an automotive future that looks unquestionably electric.

Trump has alternated between using them as leverage in trade negotiations and positioning them as a way to spur more domestic manufacturing. At the same time, he has criticized federal incentives for electric vehicle adoption — raising questions about what tools, if any, the government plans to use to support the industry. Many automakers have invested billions of dollars in US EV battery capacity , as global automakers prepare for an automotive future that looks unquestionably electric.

Executives told DailyMail.com that these uncertainties have left multiple manufacturers in the dark: they don't know what to ask customers to pay for their cars . A Ford representative didn't immediately respond to DailyMail.com's request for comment.

Executives told DailyMail.com that these uncertainties have left multiple manufacturers in the dark: they don't know what to ask customers to pay for their cars . A Ford representative didn't immediately respond to DailyMail.com's request for comment.

Want more stories like this from the Daily Mail? Visit our profile page and hit the follow button above for more of the news you need.

Want more stories like this from the Daily Mail? Visit our profile page and hit the follow button above for more of the news you need.

MexicoKentuckyMichiganOhioMissouri

Sorry we are not currently accepting comments on this article.