Ford to Raise Prices on Mexico-Made Vehicles Due to Trump Tariffs

Ford Motor Company announced it will increase prices on several of its vehicles built in Mexico including the popular Mustang Mach-E, Maverick pickup, and Bronco Sport in response to President Donald Trump’s 25% tariff on foreign vehicle imports.

The price hike, which could be as high as $2,000, will affect models built after May 2, according to an internal notice obtained by Reuters. Vehicles will start arriving at U.S. dealerships in late June, meaning consumers in the market for a new Ford could soon see a direct hit to their wallets.

“We have not passed on the full cost of tariffs to our customers,” a Ford spokesman said, adding that the increase reflects both “usual” mid-year pricing and the new tariff burden.

Ford’s move is one of the first major signs that the administration’s America-first economic policy is working exactly as intended: put pressure on manufacturers to stop outsourcing and start building here at home.

While Ford hasn't yet announced plans to move any of its Mexico-based production back to the United States, it has suspended its annual earnings guidance for 2025 and cited a $2.5 billion tariff impact, according to CNBC. Meanwhile, competitors like Hyundai, BMW, and Mercedes-Benz have already announced expanded U.S. investments to avoid tariff costs.

Trump’s tariff initiative affects an estimated 8 million imported vehicles annually. But in a show of strategic flexibility, the White House recently made a deal with automakers to prevent “stacked” tariffs ensuring that companies won’t be hit with a steel/aluminum tax on top of the auto import tax, provided they increase their commitment to domestic manufacturing.

“Ford sees policies that encourage exports and ensure affordable supply chains to promote more domestic growth as essential,” said CEO Jim Farley, now under pressure to match foreign competitors’ U.S. investment commitments.

Ford’s current promotion offering employee pricing through June 2 is expected to soften the blow temporarily, but that window is closing fast for customers hoping to buy before the full price increases hit.

This is the natural consequence of decades of globalism finally meeting a president who puts American industry first. Ford and other manufacturers took advantage of low-cost labor in Mexico for years, knowing previous administrations would turn a blind eye.

Not anymore.

Trump’s strategy isn’t about punishment it’s about rebuilding America’s manufacturing base, one factory at a time. The choice is simple: build here, or pay up. And if the latest moves by global automakers are any indication, the message is being received.

Jobs, growth, and fair trade are back on the table. And for once, the American worker has a seat at it.

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