In This Article:
Ford is warning its dealers that tariffs will likely raise prices in the coming months, the latest impact the import taxes will have on Americans’ finances.
President Donald Trump’s 25% tariffs on all imported cars went into effect April 3. In a memo to Ford dealers first reported by Automotive News, the automaker told dealers that the cost of those tariffs could be passed down on some vehicle deliveries starting in June since “certain tariffs are likely to remain in place for at least some time.”
“We will not increase the MSRP (manufacturer’s suggested retail price) for any vehicle currently in inventory with our Ford and Lincoln dealers,” Andrew Frick, president of the Ford unit overseeing retail sales, said in the memo. “However, in the absence of material changes to the tariff policy as articulated to date, we anticipate the need to make vehicle pricing adjustments in the future, which is expected to happen with May production.”
Ford confirmed the memo’s accuracy to CNN, adding that it is not expecting any imminent change in retail prices at its dealerships. That’s because cars produced in May would not arrive at dealerships until June or later.
“Customers will have a lot of choices, and we have plenty of inventory to choose from through June 2,” Ford said in a statement. “The tariff situation is dynamic and we continue to evaluate the potential impact of tariff actions.”
Automakers, dealers and American car buyers have been bracing for the impact of tariffs, which could upend the market for car purchases in the coming weeks. Experts says the 25% tariff could raise the cost to build or import cars by thousands of dollars each, as well as reducing the supply of vehicles available for sale. And with the administration also planning to put tariffs on auto parts as soon as next month, that could raise the price of cars even higher since all vehicles built the US contain some imported parts.
To help assure customers, Ford previously announced an “employee pricing” discount offer for buyers on most of its vehicles April 3, the day that tariffs on imported cars took effect. But the memo from Ford to its dealer network is a sign of that it could soon be unavoidable for Americans to dodge the impact of tariffs on car prices.
Still, there is some hope, since Trump indicated earlier this week he might change the policy on tariffs on auto parts.
“I’m looking at something to help some of the car companies where they’re switching …parts that were made in Canada, Mexico and other places and they need a little bit more time,” Trump said in remarks to journalists in the Oval Office. “They’re going to make them here, but they need a little bit more time.”