Ford Announces Plan to Raise Prices
It's a trying time for businesses around the world as they try to navigate sales and production amid the U.S.'s newly-announced tariffs. Ford Motor Co. is no exception, and in a new memo to dealers, they're starting to reveal their plans to forge ahead with the new tariffs in place.
Of course, the tariffs are impacting the supply chain, and that impacts the number of cars getting made each month. In a memo sent out on April 15, Andrew Frick, president of Ford's gas-fueled and electric car units, said the company is planning to raise prices on cars coming off assembly lines in May if tariff relief doesn't come for automakers.
Without a marked change in U.S. tariff policies, "we anticipate the need to make vehicle pricing adjustments in the future, which is expected to happen with May production," Frick said in the memo, as first reported by Automotive News.
It's not happening yet, tough. The Dearborn, Michigan, automaker is currently offering discounts across its lineup through June 2.
“Customers will have a lot of choices, and we have plenty of inventory to choose from through June 2. The tariff situation is dynamic and we continue to evaluate the potential impact of tariff actions,” a Ford spokesman added, also stating that if prices go up on vehicles produced in May, customers probably would not see higher prices until early July.
So, how much will U.S. tariffs cost the automotive industry, if they aren't adjusted? In a study conducted by the Center for Automotive Research published earlier this month, it was revealed that the U.S.'s 25% tariffs on automotive imports, which began on on April 3, will likely increase costs for U.S. automakers by roughly $108 billion in 2025.
Ford produces 80% of its U.S.-sold vehicles domestically, putting them in a better position to handle the tariffs than other automakers.
Related: Warren Buffett's 3-Word Advice on Getting Rich Amid Tariffs