Wednesday, October 8, 2025

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Ford Raises Prices on Mexico-Made Vehicles

President Trump’s tariff policies are now affecting consumer prices as Ford Motor Company (NYSE: F) becomes one of the earliest major automakers to raise prices on its Mexico-manufactured vehicles. 

Reuters, which obtained a copy of a dealer memo, reported that buyers will soon pay up to $2,000 more for popular models including the electric Mustang Mach-E, the compact Maverick pickup, and the Bronco Sport SUV.

The memo revealed the price adjustments will take effect starting May 2, with vehicles arriving at dealerships by late June. The company is maintaining its promotional “employee pricing” through Independence Day for vehicles manufactured before the tariff implementation.

When contacted for comment, Ford said the increase was part of standard mid-year price adjustments combined with the new trade reality. “We have not passed on the full cost of tariffs to our customers,” a company representative stated.

The automotive industry continues to work around significant challenges from the 25% tariff on imported vehicles implemented in early April. Financial projections vary among manufacturers, with Ford estimating tariff-related costs at approximately $2.5 billion through year-end while working to mitigate roughly $1 billion of that impact. General Motors faces potentially greater exposure, with anticipated costs between $4-5 billion.

Analysts note that Ford’s substantial domestic manufacturing base—producing nearly 80% of its US-sold vehicles locally—provides some insulation against the full impact of import duties compared to competitors. 

Nevertheless, industry forecasts suggest overall US auto sales could decline by more than one million vehicles annually if the current tariff structure remains in place.

Read: Trump Mulls Automotive Sector Relief from Certain Tariffs



Information for this story was found via Reuters, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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