Wafric News – May 8, 2025

Ford Company is set to raise prices on three of its popular vehicles built in Mexico, in direct response to the sweeping auto import tariffs rolled out by U.S. President Donald Trump — a move that’s likely to hit consumers in the pocket starting this June.

According to a report by Reuters, the price increases apply to the Mustang Mach-E, the Maverick pickup, and the Bronco Sport, with some models rising by as much as $2,000. The new pricing will apply to vehicles produced from May 2 onward and expected to reach U.S. dealer lots by late June.

This marks one of the first major responses by a top automaker to the growing cost pressure triggered by Washington’s protectionist policies.

Ford acknowledged that the ongoing trade war would cost the company approximately $2.5 billion in 2025. However, the Michigan-based automaker says it expects to offset at least $1 billion through internal adjustments. By contrast, rival General Motors recently said tariffs could cost it $4–5 billion, though it also aims to cut the impact by up to 30 percent.

The broader U.S. auto sector has been rattled by weeks of uncertainty. Trump’s tariff hikes have already forced carmakers to revise production forecasts, delay investments, and temporarily shut down factories.

While Trump eased some restrictions by offering credits for domestic parts production — aimed at avoiding double taxation on raw materials — the administration has not lifted the 25% tariff on the nearly 8 million vehicles imported into the U.S. each year.

Ford is better positioned than many of its competitors, thanks to a strong domestic manufacturing base. According to analysts at Barclays, 79% of Ford vehicles sold in the U.S. are built locally, compared to just 53% for GM.

Still, the pressure is mounting across the industry. Automakers that heavily rely on exports to the U.S. — such as Toyota, Volkswagen, and Hyundai — are feeling the squeeze. Data from S&P Global Mobility shows that more than a dozen major brands import over 40% of their U.S. inventory, with some crossing the 60% mark.

So far, most global carmakers have held off on officially raising prices, but the warnings have been loud and clear. Porsche has already indicated it may be forced to raise prices if the tariffs remain, and Audi — part of the Volkswagen group — has signaled the same.

BMW, however, offered a rare optimistic note, suggesting that U.S. tariffs could ease by July, based on discussions with American officials.

GM, for its part, says it’s holding off on price hikes — for now. “We feel good about where the pricing environment is today,” CFO Paul Jacobson told analysts last week.

But with Ford leading the charge on price increases, industry watchers warn that other automakers may soon follow — bringing the cost of cars closer to the breaking point for many American buyers.


By WafricNews Business Desk.