Ford Motor Company may increase prices on new vehicles if President Donald Trump’s auto tariffs continue. A memo sent to dealers on Wednesday, reviewed by Reuters, outlines the price pressures and possible impact of the ongoing tariffs on auto imports.
The automaker began offering deep discounts on its lineup earlier this month. Despite the uncertainty, they will continue to provide the discount through June 2. However, Ford will likely increase pricing on new models built from May onward if the Trump administration’s tariff policy remains unchanged.
If prices do rise, consumers likely won’t feel the effects until early July due to the healthy inventory supply levels across dealerships. Ford and Lincoln models already in dealer inventory will not see a sticker price increase.
Ford is best equipped to navigate the tariffs among all auto brands because 80% of its U.S.-sold vehicles are domestically produced. While this production model offers a relative buffer against escalating import costs, it doesn’t make the automaker immune to the tariff’s impact.
In a broad trend, U.S. and foreign automakers have offered discounts and price assurances to mitigate consumer fears over tariff-related price increases. However, they’ve warned lawmakers that long-term tariffs will increase prices.
Earlier this week, President Trump said that his administration would consider easing tariffs on imported auto parts to give automakers time to shift their supply chains and expand domestic production. As of yet, there has not been any public confirmation of plans to modify or grant exemptions to the auto tariffs.
