The price increase is the result of Trump’s tariffs on auto imports, and auto companies will eventually transfer to consumers’ cars that will hit dealers in June.
Ford Motor Company has raised the prices of three vehicles it manufactures in Mexico, becoming one of the first major automakers to adjust label prices after tariffs from U.S. President Donald Trump.
The new price is effective for vehicles on May 2 or later, and the news agency first reported the story on Wednesday, Reuters reported.
According to a notice reviewed by Reuters, the Mustang Mahch electric SUV is priced at one of its most affordable and popular vehicles, one of its most affordable and popular vehicles, the Mustang Sport will add up to $2,000 to some models. A Ford spokesman said the rising car will arrive at dealers in late June.
Ford said the trade war will increase $2.5 billion in 2025, but is expected to reduce that exposure by about $100 million. GM said last week that tariffs are expected to lose between $4 billion and $5 billion after the high tax on foreign imports of automobiles, but it is expected to impose it at least 30%.
Trump’s tariffs have released weeks of uncertainty across the automotive industry as major automakers in the U.S. and Europe have already proposed forecasts that have changed production and left companies idle.
With weeks of push from the automotive industry, Trump has weakened his tariffs on foreign auto parts imports to give automakers credibility on products produced in the U.S. and avoid a double impact on raw materials used in production. However, the White House has not yet lifted the 25% tariff on the 8 million cars imported annually by the United States.
Thanks to its strong US manufacturing base, Ford has better position on climate tariffs than some competitors. Dearborn, Michigan automakers gather 79% of their U.S. sales vehicles at home, while General Motors 53% is 53%, according to an analyst at Barclays.
Ford and General Motors also impose taxes on imports from China and South Korea respectively. General Motors estimates that the cost of its South Korean imports totals about $200 million, while Ford refuses to specify the cost of importing vehicles around China.
Automakers relying on exports to the U.S. are facing increased pricing pressure. According to 2024 data from S&P Global Liquidity, more than a dozen major automakers, including Toyota and General Motors, including Volkswagen and Hyundai, some of which have at least 40% of their vehicles imported more than 60%.
Before Ford's action, most automakers did not take steps to raise prices, but warned that it was on the road. Porsche said that if the tariffs are retained, it would have to increase its sales costs, and the Audi brand of Volkswagen in the United States also suggested potential price increases without providing any details.
By contrast, BMW expects U.S. auto tariffs will fall from July based on contact with U.S. officials — an assessment of the trade climate is more optimistic than many competitors. General Motors finance chief Paul Jacobson told analysts last week that the automaker was not expected to rise, saying "they are happy with the pricing environment today."