Ford hikes prices on imported models amid tariff challenges

In the United States, Ford Motor Company has announced plans to increase sticker prices on three of its models imported from Mexico. The vehicles affected are the Mustang Mach-E electric vehicle, the Bronco Sport crossover, and the Maverick pickup truck. The price hikes, which can reach up to $2,000, come as a direct response to new tariffs imposed by the Trump administration earlier this year. The tariffs, which began in April 2025, have added a 25% charge on imported vehicles, forcing Ford to adjust its pricing strategy. Ford's decision to raise prices was disclosed in a memo sent to dealerships, and the increase is aimed at vehicles built after May 2, 2025. The company emphasized that cars already in inventory would not see price changes, which aligns with their typical mid-year pricing adjustments. Despite the price increases, Ford has committed to maintaining employee pricing offers until at least July 4, as it seeks to balance the impact of tariffs while optimizing its sales strategy. The implications of these tariff-driven price hikes are significant for both Ford and U.S. consumers. With the imported models accounting for a substantial portion of Ford's U.S. sales — around 17% in the first quarter of 2025 — the financial strain of the tariffs could amount to approximately $1.5 billion for the company this year alone. The situation has sparked widespread discussions about the future of vehicle pricing in the U.S. market, particularly as consumers have already faced persistent price increases since 2020. Ford’s adjustment comes amid a broader landscape where other automakers have been slow to react to tariff-driven cost increases. The company's action is notable, considering prior statements by executives suggesting minimal expected rises in industry-wide car prices. With rising costs and the overarching economic pressures of international trade conflicts, the automotive market in the U.S. is poised for further volatility.