Ford Navigates Tariff Turbulence: Mexican Models See Price Hikes

Ford Motor has announced a price increase for three models produced in Mexico, effective May 2, as it becomes one of the first major automakers to respond to U.S. President Donald Trump's tariffs. The affected models, including the Mustang Mach-E electric SUV, Maverick pickup, and Bronco Sport, will see prices rise by up to $2,000.

This decision follows Ford's earlier statement that President Trump's trade war could cost the company approximately $2.5 billion by 2025. Despite these challenges, Ford plans to minimize tariff impact by around $1 billion. General Motors also faces substantial tariffs, with projected costs of $4 billion to $5 billion, though it anticipates offsetting at least 30% of that impact.

With Trump's tariffs causing widespread uncertainty in the automotive sector, major manufacturers have been forced to adjust forecasts and operations. Ford, in particular, benefits from its strong U.S. manufacturing base, which aids in absorbing tariff shocks better than some competitors. However, the company still imports key models, such as the Maverick, from Mexico, which could lead to significant price increases due to foreign levies.

(With inputs from agencies.)