Ford is one of the first major automakers to adjust its prices in the United States in response to the new tariffs imposed by the U.S. administration. Since May 2nd, the prices of the Mustang Mach-E electric SUV, Maverick pickup and Bronco Sport compact SUV, all assembled in Mexico, have increased by up to $2,000 USD for certain versions.
These increases only affect vehicles produced after May 2nd; it’s expected those will arrive at dealerships by the end of June, according to a notice sent to the distribution network and obtained by Reuters.
Increases linked to tariffs… but not only
A Ford spokesperson explained that the adjustments are part of the usual mid-year pricing revisions for the model-year. However, the impact of tariffs is very real: "We are facing new tariffs, but we have not passed on the full cost to our customers," he stated.
The announcement follows on the heels of an earlier Ford statement that the trade war initiated by President Trump is expected to translate into $2.5 billion USD in additional costs in 2025, forcing the suspension of its financial forecast for the year. General Motors has also evoked similar losses.
An industry plunged into uncertainty
The imposition of auto tariffs as plunged the North American and global automotive sectors into a period of great instability. Major manufacturers, both American and European, have had to revise their strategies. We are seeing forecasts suspended, production relocated and temporary shutdowns of certain assembly lines.
Faced with criticism from the industry, Trump recently eased tariffs on foreign auto parts, offering credits for locally produced parts to avoid a “double penalty” on raw materials. However, the White House is maintaining a 25-percent tax on some 8 million vehicles imported each year.
Sales will suffer
A number of analysts are predicting that the tariffs could lower American vehicle sales by more than a million vehicles per year if tariffs remain in place long-term. That will be difficult to handle for automakers already struggling with the costs of electrification, logistical costs and ever-tougher environmental requirements.