Ford Motor Company announced that it doesn’t expect significant price hikes for its vehicles despite facing $1.5 billion in costs due to President Donald Trump’s auto tariffs. The automaker’s CFO, Sherry House, stated during the first-quarter earnings report that US car prices are expected to rise by 1% to 1.5% in the second half of 2025 due to tariffs on imported vehicles and auto parts.
The tariffs, which include a 25% levy on imported vehicles and auto parts, have created uncertainty for automakers. While Ford expects a minimal overall price increase, the company may adjust its strategies in the short term. House mentioned that automakers could reduce buyer incentives, potentially leading to higher prices sooner. Additionally, new models launching in the fall could have higher sticker prices.
Ford’s situation differs from General Motors, which warned shareholders of a potential $4 billion to $5 billion impact this year. Ford’s advantage lies in producing over 80% of its vehicles sold in the US at American assembly plants, reducing its exposure to tariffs compared to other automakers like GM.
The uncertainty caused by Trump’s tariffs led Ford to withdraw its full-year earnings guidance. Recently, CEO Jim Farley announced an “employee pricing” offer extension through July 4, although he couldn’t guarantee its continuation beyond that date. Currently, Ford is selling off its inventory of imported vehicles that arrived before the tariffs took effect last month.
