Ford may hike prices if Trump’s auto tariffs persist, memo says

Ford Motor whitethorn raise prices on its new vehicles if President Trump’s auto tariffs continue, according to a memo sent to dealers on Wednesday that was reviewed by Reuters.

The Dearborn, Michigan, automaker offered heavy discounts crossed its lineup starting earlier this month through June 2. The programme will continue, but pricing connected caller models produced successful May and beyond whitethorn change, nan memo said.

Automotive News first reported news of nan memo.

“Customers will person a batch of choices, and we person plentifulness of inventory to take from done June 2. The tariff business is move and we proceed to measure nan imaginable effect of tariff actions,” a Ford spokesman said, adding that if prices changed connected vehicles produced successful May, customers apt would not spot an summation until early July.

The automaker said successful a memo that nan heavy discounts it began offering connected its vehicles earlier this period done June 2 will continue, but nan pricing connected vehicles produced successful May aft afterwards whitethorn change. Getty Images

Both U.S. and overseas automakers have rushed to alleviate consumer concerns astir tariffs inflating costs astatine dealerships by offering value assurances and important discounts.

While nan short-term effects of tariffs person driven up sales, U.S. automakers person privately warned lawmakers that they will beryllium forced to drastically raise prices if nan tariffs stay successful place.

“In nan absence of worldly changes to nan tariff argumentation arsenic articulated to date, we expect nan request to make conveyance pricing adjustments successful nan future, which is expected to hap pinch May production,” Ford executive Andrew Frick said successful nan memo.

Ford produces astir 80% of its vehicles sold successful nan U.S. domestically, making it 1 of nan best-placed automakers to upwind tariffs. AFP via Getty Images

Ford will not summation nan sticker value connected immoderate conveyance presently successful inventory at Ford and Lincoln dealers, nan memo said.

An analysis by nan Center for Automotive Research published earlier this period revealed that Trump’s 25% tariffs connected automotive imports, implemented connected April 3, will escalate costs for U.S. automakers by astir $108 cardinal successful 2025.

Ford is among nan best-placed automaker to upwind tariffs, arsenic it produces astir 80% of its U.S.-sold vehicles domestically.

Earlier this week, Trump had floated nan thought that he was considering a modification to nan auto-related tariffs, suggesting he mightiness assistance exemptions connected levies already successful place.