Ford told its U.S. dealers on Wednesday that it is raising prices on three of its Mexico-produced models, becoming the first Detroit carmaker to increase them as a reaction to the tariffs announced by the Trump Administration.
According to Reuters, dealers received a notice informing prices would increase up to $2,000 for vehicles produced after May 2, which will affect the Mustang Mach-E electric and the Bronco SUVs, and the Maverick pickup.
In the U.S., the fully electric Mustang Mach-E begins at $38,490 while the Bronco model is priced from $37,995. The Maverick pickup, which is available in fully electric and hybrid powertrains, starts at $28,145.
The updated prices are expected to take effect by the end of the quarter, as the newly produced vehicles reach dealerships.
“We have not passed on the full cost of tariffs to our customers,” a Ford spokesperson told Reuters, adding that the price hike is due to usual mid-year alterations
“combined with some tariffs we are facing.”
The brand’s domestic production stands at 77%, while 23% of vehicles and auto parts are mostly imported from Mexico and Canada. Last week, U.S. Commerce Secretary Howard Lutnick said that “USMCA [United States-Mexico-Canada Agreement] parts will not carry tariffs, no change in that approach.”
CEO Jim Farley told CNN in mid-April that Ford‘s “been working with Mary [Barra, GM’s CEO] and Stellantis too as a group (…) to get this all right and kind of figure it out together.”
Q1 Results
Ford reported its first quarter earnings results on Monday suspending its annual guidance over tariffs citing uncertainty and disclosing that it expects a $1.5 billion hit caused by the duties.
Ford’s CEO Jim Farley stated at the earnings call that the company estimates “gross impact of tariffs for full year total company EBIT (Earnings Before Interest and Taxes) of $2.5 billion and a net impact of $1.5 billion.”
The chief executive said that “Ford supports the administration’s goal to strengthen the U.S. economy by growing American manufacturing, and we also support a level playing field globally for domestic and foreign OEMs.”
He noted “ongoing cooperation (…) with the administration,” as he had previously told CNN that Ford has “worked with his [Trump’s] team like every day for the last couple months and at a very high level of engagement.”
