Ford Raises US Prices on Mexico-Made Cars Over Tariff Costs

Ford has raised US prices for three Mexico-manufactured models—the Mustang Mach-E, the Maverick, and the Bronco Sport—by up to US$2,000, citing the financial impact of tariffs imposed by President Donald Trump’s administration. The price adjustments apply to vehicles assembled after May 2 and are expected to reach dealerships by late June.

In a notice sent to dealers and reviewed by Reuters, Ford confirmed the increases, becoming one of the first major automakers to revise sticker prices in response to trade measures. “The price increases reflect usual mid-year pricing actions combined with some tariffs we are facing. We have not passed on the full cost of tariffs to our customers,” a Ford spokesperson stated.

Ford estimates that the new tariffs will increase its overall costs by approximately US$2.5 billion in 2025. However, the company expects to offset about US$1 billion through internal cost-cutting and strategic adjustments. “We are actively managing the exposure,” the spokesperson added.

The tariffs come amid widespread uncertainty in the automotive industry. US and European manufacturers have delayed forecasts, restructured operations, and temporarily halted production due to the evolving trade environment. While the White House has revised some measures—such as providing credits for domestically produced parts to avoid duplicate tariffs—it has maintained a 25% tariff on roughly 8 million foreign-made vehicles imported annually into the United States.

Ford's Mexico-built models have been particularly affected. The Maverick, one of the company’s most affordable and popular vehicles in the US market, is now directly subject to the increased tariffs. Many US-based automakers rely on Mexico for assembling entry-level models, magnifying the impact of trade measures on pricing.

Despite the price hike, Ford is offering discount incentives on various models through the Jul. 4 holiday weekend to maintain competitive pricing during this volatile period.

“Tariffs add substantial cost pressure, particularly on models like the Maverick that are crucial to market competitiveness,” said an industry analyst familiar with North American trade impacts.