Overview of Price Adjustments

On Wednesday, Ford Motor Company announced a price hike on three of its models produced in Mexico. This decision is attributed to increased U.S. tariffs on imported vehicles. The affected models are the Maverick, Bronco Sport, and Mach-E, with price adjustments reaching up to $2,000 per vehicle.

Details of the Price Increases

The new pricing applies exclusively to vehicles manufactured after May 2 and expected to arrive at dealerships in late June. Vehicles that have already been shipped and are currently on dealer lots will remain at their original prices.

Ford cited “usual mid-year pricing actions” alongside the impact of tariffs as the reasoning behind this increase.

The Impact of Tariffs

According to reports, the Trump administration imposed a 25% tariff on vehicles assembled outside of the U.S. Ford revealed that it is absorbing some of the costs associated with these tariffs, rather than passing the entire burden onto consumers. The nation imports approximately 8 million vehicles each year, impacting a wide range of buyers.

Ford anticipates a significant operating profit reduction of $1.5 billion this year due to these tariff-related costs. This economic uncertainty stems from the trade policies initiated under the previous administration, leading Ford to retract its full-year financial projections.

Potential Price Escalations for Consumers

For car buyers, higher tariffs on foreign-made vehicles, coupled with retaliatory measures from other countries, could lead to price increases ranging from $2,000 to $12,000, depending on the model. The electric Mach-E, produced in Mexico, faces tariffs exceeding $12,000, while the U.S.-made Explorer SUV incurs levies of about $2,400.