Ford is hiking prices on three of its Mexico-produced models effective May 2. 

The iconic automaker is one of the first major car brands to adjust sticker prices following US President Donald Trump’s 25 percent auto tariffs.

According to a notice sent to dealers and reviewed by Reuters, Ford is raising prices for its Mustang Mach-E electric SUV, Maverick pickup, and Bronco Sport by up to $2,000 on certain models. 

This decision follows closely after Ford disclosed that they anticipate paying $2.5 billion in tariffs to the federal government for using foreign parts in their domestic vehicles. 

While consumer advocates have cautioned that tariffs could lead to higher new vehicle and insurance costs, car manufacturers had previously been non-specific about how these costs would translate to increased prices until now.

Now, Ford’s dealership message and pricing offers one of the clearest glimpses yet at how much of that burden could fall on buyers. 

The company says it plans to offset around $1 billion of the tariff costs through accounting changes and adjustments to vehicle pricing. 

Spread across the 2.08 million vehicles Ford sold in the US last year, DailyMail.com calculates buyers can expect around $480 tacked onto the price of US-built SUVs and trucks. 

Ford estimates that it will spend $2.5 billion on tariffs annually

That ballpark figure will vary depending depending on the model, its supply chain, and further policy changes from the White House. 

But the message is clear: some of the added cost is expected to land on buyers, even for some of the most American-made cars on the planet. 

Ford says the remaining $1.5 billion in tariffs will be absorbed by the company itself, cutting into profits.

The automaker pulled its 2025 financial guidance this week, citing policy uncertainty and the risk of supply chain disruptions. 

‘There’s a number of things that we are working through,’ Ford’s CFO, Sherry House, said during the earnings call, noting potential impacts from both customer behavior and regulatory shifts.

‘It’s the policy issues that we had alluded to — the clarification of how some of these are landing, as well as some uncertainty associated with tax and emission policy.’ 

Despite the high tariff price, Ford appears to bein a stronger position than its competitors. 

More than 80 percent of its US sales are built in plants across Michigan, Missouri, Kentucky, and Ohio.

Ford’s CEO, Jim Farley, said the company is reliant on parts suppliers in other countries because the US doesn’t make enough carpets and fasteners for the company’s assembly lines

The Blue Oval beat Wall Street’s profit expectations for the first quarter, but the company pulled its earnings guidance for the rest of the year

Ford has a sprawling production footprint in the US, assembling 80 percent of its products in America

The US manufacturing keeps Ford’s exposure to vehicle import tariffs lower than rivals like General Motors, which recently said it expects to face $4 billion to $5 billion in tariff-related costs. 

Ford has highlighted its American production advantage with a massive sales event: it’s offering employee pricing to all US consumers until July 4.  

Still, Ford CEO Jim Farley has acknowledged the company’s dependence on foreign parts. In a recent interview, he pointed out the limited availability of components like fasteners and carpeting in the US.

Ford purchases the parts from other manufacturers. They’re individually subject to 25 percent tariffs under the current tax regime.  

Ford’s foreign parts struggles highlight how automakers are still struggling to interpret the broader strategy behind the tariffs. 

Trump has alternated between using them as leverage in trade negotiations and positioning them as a way to spur more domestic manufacturing.

At the same time, he has criticized federal incentives for electric vehicle adoption — raising questions about what tools, if any, the government plans to use to support the industry.

Many automakers have invested billions of dollars in US EV battery capacity, as global automakers prepare for an automotive future that looks unquestionably electric. 

Executives told DailyMail.com that these uncertainties have left multiple manufacturers in the dark: they don’t know what to ask customers to pay for their cars.