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Ford Raises Prices on Mexican-Made Vehicles Amid Tariff Impact
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2025-05-19
Ford has announced immediate price increases on three of its Mexico-produced models effective May 2, 2025. Some models will see price hikes of up to USD 2,000, marking one of the clearest examples of how US auto tariffs are affecting consumers. The price adjustments follow President Trump's imposition of a 25% tariff on imported auto parts, which Ford estimates will cost the company USD 2.5 billion annually. Ford plans to absorb USD 1.5 billion of these costs but will pass on about USD 1 billion to customers through higher vehicle prices. Spread over the 2.08 million vehicles Ford sold in the US last year, this translates to roughly USD 480 added to the price of US-built SUVs and trucks.
Ford noted the company's reliance on foreign parts-such as carpeting and fasteners not sufficiently produced in the US-that are subject to tariffs. Despite this, Ford's strong US manufacturing base limits its exposure compared to rivals like General Motors, which expects USD 4-USD 5 billion in tariff costs.
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