Ford Motor said price hikes on its vehicles could be in store for customers this summer if the Trump administration’s 25% tariffs on automobiles and auto parts imported to the U.S. remain in effect.
The company addressed the price hikes in a memo sent to dealers this week, a Ford spokesperson confirmed to CBS MoneyWatch. The memo was earlier reported by Automotive News.
A Ford spokesperson said the price hikes aren’t imminent, and would only be implemented on inventory that’s manufactured beginning in May. Those vehicles wouldn’t start hitting dealers’ lots until around July, the spokesperson told CBS MoneyWatch.
“Everything is so fluid, so there is a possibility we’d have to take up pricing,” Ford spokesperson Said Deep told CBS MoneyWatch.
The price hikes, should they go into effect, would not be applied to any of the company’s existing inventory. “The tariff situation is dynamic and while we continue to evaluate the potential impact of tariff actions, we will not change the price of any vehicle currently in inventory through June 2,” Deep added.
The company is currently running a promotion to offer all customers employee pricing rates through its “From America, For America” program, through June 2. Ford announced the deal on April 2, the same day the 25% levies took effect.
“We understand that these are uncertain times for many Americans,” Ford said in a statement announcing the promotion. “Whether it’s navigating the complexities of a changing economy or simply needing a reliable vehicle for your family, we want to help.”
Ford has “plenty of inventory to choose from through June 2,” Deep said of the deal.
Analysts expect car prices to rise under Mr. Trump’s sweeping tariff agenda. Automakers depend on a highly-integrated supply chain that sometimes has auto parts crossing borders multiple times before a vehicle is fully assembled.
Very few vehicles, even those made by U.S.-based manufacturers, are 100% American-made.
