Ford Motor might increase the prices of its new vehicles if US President Donald Trump’s car tariffs persist, as stated in a memorandum sent to dealers on Wednesday and examined by Reuters.
The car manufacturer fromDearborn,Michigan started offering significant discounts on their entire range of vehicles beginning early this month untilJune 2. While the offer will keep going, prices for newly manufacturedmodelsstartinginMayandlatermight be adjusted,disclosedthe memo.
The Automotive News was the first to report about the memo.
We offer numerous options for our customers, with ample stock available up till June 2nd. As circumstances regarding tariffs evolve, we continuously assess their possible effects,” stated a representative from Ford. They further noted that should pricing adjustments be made on cars manufactured in May, consumers might only notice these changes starting around early July.
In response to consumers’ worries over tariffs driving up prices at dealerships, both American and international car manufacturers have hastened to provide price guarantees and significant reductions.
Although tariffs have boosted sales in the short term, U.S. car manufacturers have discreetly alerted legislators that they would need to significantly increase prices if these tariffs continue to apply.
“Without significant alterations to the current tariff policy as outlined so far, we expect to adjust vehicle prices moving forward. This adjustment is anticipated to occur starting with vehicles produced in May,” stated Ford executive Andrew Frick in the memo.
The memo stated that Ford has decided against raising the advertised prices on any of its vehicles that are presently stocked at Ford and Lincoln dealerships.
A study from the Center for Automotive Research released earlier this month indicated that President Trump’s 25% duties on imported vehicles, which took effect on April 3rd, would increase expenses for U.S. car manufacturers by approximately $108 billion in 2025.
Ford is well-positioned to handle tariffs effectively since approximately 80 percent of the vehicles sold in the U.S. are manufactured domestically.
Earlier this week, Trump suggested he was thinking about changing the auto-related tariffs, indicating that he might provide exceptions for some of the duties already imposed.