Under heavy tariff pressure, Ford (F.US) took the lead in price adjustments! Three Mexican-made models rose to a maximum of 2,000 US dollars

The Zhitong Finance App learned that Ford Motor Company (F.US) announced price increases for three Mexican models starting May 2, becoming one of the first major car companies to adjust the guide prices after the Trump administration implemented the additional tariffs.

According to the notice sent to dealers, some versions of the Mustang Mach-E electric SUV, Maverick pickup truck, and Bronco Sport increased in price by up to $2,000.

Earlier this week, Ford estimated that Trump's trade war would increase its costs by about $2.5 billion in 2025, but the company plans to reduce the impact to about $1 billion through measures. Competitor General Motors (GM.US) said last week that it is expected to bear costs of US$4 to 50 billion after implementing the high tariff policy on automobile imports, but it is expected to offset at least 30% of the impact through strategies.

A Ford spokesperson said that this price adjustment applies to vehicles manufactured after May 2, and these models will arrive at dealerships in late June. The spokesperson stressed that this price adjustment not only includes “regular” mid-year price adjustments, but also reflects “the transmission of part of tariff costs,” but “not all tariffs have been passed on to consumers.”

The spokesperson said that the company will still maintain promotion policies for various models until the weekend of July 4.

Trump's tariff policy has caused weeks of uncertainty in the automobile industry, and major European and American car companies have adjusted their forecasts, transferred production capacity, and even suspended factory operations.

After continued pressure on the automobile industry, although the government relaxed the auto parts import tariff policy — providing tax credits for local production and avoiding double taxation of automobile raw materials, the 25% tariff levied on 8 million vehicles imported by the US per year has not been lifted.

Analysts warned that if the tariff policy continues, the annual sales volume of US cars may be reduced by more than one million units.

According to the Barclays analysis report, with 79% of the industry advantage of selling vehicles locally assembled in the US (GM is only 53%), Ford is more resilient than its competitors.

Despite this, Ford's best-selling affordable model, the Maverick, still needs to be imported from Mexico. Most American car companies are facing sharp price increases for Mexican economy models.

Furthermore, Ford and GM face heavy tax burdens on imported vehicles from China and South Korea, respectively. GM estimates the total cost of cars imported from South Korea to be about 2 billion US dollars, while Ford did not disclose the exact cost of imported vehicles from China.

Automakers that rely on exports to the US are facing increasing pricing pressure. According to S&P Global Mobile Data, 12 major car companies, including Toyota (TM.US) and GM, rely on imports for at least 40% of vehicles sold in the US, and brands such as Volkswagen (VWAGY.US) and Hyundai have imported more than 60%.

Prior to Ford's move, most car companies had issued early warnings even though they had not actually adjusted prices.

Porsche (POAHY.US) clearly stated that it would pass on tariff costs, and Volkswagen's Audi brand also hinted at a possible price increase, but did not provide any details.

In contrast, based on communication with the US government, BMW expects automobile tariffs to be lowered in July. This optimistic expectation is in stark contrast to its peers. GM Chief Financial Officer Paul Jacobson told analysts last week that the company has no immediate price increase plans and is “optimistic” about the current pricing environment.