Ford has announced that it will increase prices on three of its models produced in Mexico, including the Mustang Mach-E SUV, Maverick pickup, and Bronco Sport. The price hikes, effective from May 2, 2025, will see costs rise by up to $2,000 for models built after this date, with the new pricing expected to be reflected at dealerships by late June.

The decision to adjust prices comes in response to recent tariffs imposed by the U.S. government under President Donald Trump, which are adding significant costs to production. Reuters reports that Ford projects these tariffs will increase its expenses by $2.5 billion in 2025. However, the company plans to offset about $1 billion of this rise through various mitigation strategies.

Ford's pricing adjustments highlight the broader impact of trade policies on the auto industry, especially for models like the Maverick, which are among the more affordable options imported from Mexico. Ford currently builds 79% of its U.S.-sold vehicles domestically, which contrasts with companies like General Motors that produce a smaller percentage of their vehicles locally. This domestic production strategy provides some buffer against tariff pressures, a crucial consideration as companies navigate these shifting regulatory landscapes.