Al Root

Ford Motor is raising prices. This is how and when tariffs start to impact U.S. car buyers.

Wednesday, Reuters reported that prices for a Mustang Mach-E, Maverick pickup, and Bronco Sport would rise by as much as $2,000 on some trim levels, citing a memo sent to dealers. Those vehicles start from roughly $28,000 to $36,000 currently.

Ford operates by selling vehicles to dealers, and dealers then sell to consumers. Prices for new vehicles haven't moved much yet because almost all of the existing inventory on dealer lots was built and acquired before tariffs went into effect.

Ford declined to provide the memo but acknowledged the pricing changes, pointing out that its promotional pricing runs through the July 4 weekend.

The Bronco Sport, Maverick, and Mach E are built in Mexico. It seems as if Ford's early pricing actions are focused on imported vehicles. Ford didn't immediately respond to a request for comment about other price increases on U.S.-made models.

Investors continue to wonder how auto makers will adapt to tariffs. Will they spread out price increases across the model lineup or will they apply pricing change to where tariffs bite the most? There is no easy answer for the car companies. Price increases on certain models only could move market share. A domestically built Tesla Model Y could become relatively more attractive than a Mach E.

That's one thing investors don't know yet. Another thing is how higher prices will impact demand for new cars.

The uncertainty and tariff-related cost increases have weighed on investor sentiment. Coming into Thursday trading, Ford stock was down about 3% since the Nov. 5 election. General Motors and Stellantis shares were down about 15% and 32%, respectively. Ford imports about 20% of the cars it sells domestically. GM and Stellantis import closer to 45%.

Ford estimated a $1.5 billion hit to profits from tariffs in 2025. GM estimated a roughly $3.5 billion hit. Stellantis suspended its 2025 financial guidance.

Ford stock was up 0.9% at $10.37 in premarket trading, while S&P 500 and Dow Jones Industrial Average futures were up 0.9% and 0.7%, respectively.

Write to Al Root at allen.root@dowjones.com

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May 08, 2025 09:33 ET (13:33 GMT)

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