Ford Warns Dealers of Potential Price Increases Due to Tariffs

Ford is warning its dealers that tariffs will likely lead to higher prices in the coming months, marking the latest impact of import taxes on American consumers. President Donald Trump’s 25% tariffs on all imported cars took effect on April 3. In a memo to Ford dealers, first reported by Automotive News, the automaker indicated that the cost of these tariffs could be passed down to some vehicle deliveries starting in June, as “certain tariffs are likely to remain in place for at least some time.”
Andrew Frick, president of Ford’s retail sales unit, stated in the memo that while the manufacturer’s suggested retail price (MSRP) for vehicles currently in inventory will not increase, adjustments to vehicle pricing are anticipated in the future if tariff policies remain unchanged. This pricing adjustment is expected to affect cars produced in May, which would arrive at dealerships in June or later.
Ford highlighted that customers will still have a variety of choices and plenty of inventory available through early June. The situation surrounding tariffs remains dynamic, and the company is continuously evaluating their potential impact.
Automakers, dealers, and American car buyers are preparing for the tariffs’ effects, which could disrupt the market for car purchases in the coming weeks. Experts predict that the 25% tariff could significantly increase the cost to build or import cars, potentially raising prices by thousands of dollars per vehicle and reducing the supply available for sale. Furthermore, with plans for additional tariffs on auto parts as soon as next month, the prices of vehicles built in the U.S. could rise even further, as all vehicles contain some imported components.
To reassure customers, Ford previously introduced an “employee pricing” discount offer for buyers on most vehicles on the day the tariffs took effect. However, the memo to dealers signals that it may soon become unavoidable for Americans to face the impact of tariffs on car prices.