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Ford Motor Company (F) has become one of the first major automakers to increase retail prices as a result of President Donald Trump’s tariffs.
Reuters, citing a notice sent to dealers, reports that purchasing a Mustang Mach-E electric SUV, Maverick pickup, or Bronco Sport will now cost consumers up to $2,000 more. The revised prices went into effect May 2 and will affect models arriving in dealer lots from late June.
A Ford spokesperson told Reuters the price changes reflect “usual” mid-year pricing actions, combined with the impact of Trump’s 25% levy on vehicles imported into the U.S.
Ford said Monday tariffs would cost the company $2.5 billion in 2025. It estimates that $1 billion of that could be absorbed through various strategies, such as by transporting vehicles from Mexico to Canada, thus evading the levy.
“We have not passed on the full cost of tariffs to our customers,” the spokesperson told Reuters.
While the 25% levy, introduced March 29, remains intact, the situation is fluid. Ongoing pushback from the auto industry has led to some concessions. An executive order signed April 29 permits carmakers to offset the tariff when producing auto parts domestically.
Ford has also halted its annual guidance, citing the ongoing uncertainty.
The 25% sweeping tariff will hit 8 million vehicles imported into the U.S. annually, setting the auto industry back considerably this year. General Motors (GM) anticipates up to $5 billion in tariff-related costs, while the wider industry forecasts that vehicle prices could jump by 25%. In April, the S&P Global (SPGI) downgraded its 2025 forecast for U.S. vehicle sales by 700,000.
Ford stock was down about 1.3% Wednesday afternoon.