On the surface, Ford (F) says it backs President Donald Trump and his tariff plan.
“Ford supports the administration’s goal to strengthen the U.S. economy by growing manufacturing, and we also support a level playing field globally for domestic and foreign original equipment manufacturers (OEM),” Ford CEO Jim Farley said during the company’s earnings call.
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After all, the tariffs burden its European and Asian rivals, and Ford already makes the bulk of its vehicles in the U.S.
Ford says it assembled over 300,000 more vehicles in the U.S. than its closest competitor in 2024, including all of its pickup trucks.
In March, the auto industry became the first major industry to get some relief from the tariffs when the White House announced an exemption for vehicles covered by the United States-Mexico-Canada Agreement (USMCA).
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The U.S. placed a 25% tariff on imported autos and auto parts, but USMCA-compliant products are exempt, saving domestic automakers billions in the process.
Despite this exemption, the tariffs are causing prices to increase across the board.
Now, Ford, a company known by American consumers for its affordability, is forced to raise prices.
Ford will hike the price of its entry-level pickup truck.
Image source: Ford
Ford loses last sub-$30,000 truck to tariffs
The Ford Maverick, an entry-level pickup, is now priced at $29,845 after delivery; however, after paying taxes, title, and license fees, the lowest-priced Ford now costs over $30,000.
The Maverick’s price has jumped 50% in just four years since it debuted in 2022, when its MSRP was $19,995. However, the vehicle, which is built at Ford’s Hermosillo plant in Mexico, has had supply chain issues, which have pushed prices higher.
A Ford spokesperson confirmed that Ford will raise prices on the Maverick and Bronco Sport (which are also made at the Hermosillo plant) by as much as $2,000.
Related: American car company takes drastic action in response to tariffs
The company says the increase was due to its usual midyear pricing actions, but it was also “combined with some tariffs we are facing. We have not passed on the full cost of tariffs to our customers.”
“Our approach throughout this evolving situation continues to be doing what’s right for our customers – and our business,” a company spokesperson said.
The price increases will apply to vehicles built after May 2. Those vehicles will start arriving on dealer lots starting in late June.
The Bronco Sport starts at $33,285 after destination and acquisition fees, according to Jalopnik.
Car companies navigate a new normal
Tariffs was the topic of conversation on both General Motors’ and Ford’s earnings calls.
For the full year, Ford said it expects to take a $1.5 billion gross hit to EBITDA from the tariffs, though it also cautioned that it is still too early to fully gauge exactly how much disruption there will be to the global supply chain due to the duties that went into effect.
Meanwhile, GM announced that it is pulling its guidance for 2025 and pausing $4 billion in share buybacks until it gains more visibility on U.S. tariffs.
“Because the original guidance didn’t include impact from tariffs, prior guidance can’t be relied upon,” Paul Jacobson, the company’s chief financial officer, said. “We will update when we have more information on tariffs.”
The company had previously expected to earn between $11 and $12 per share this year. In January, it announced plans for $6 billion in new share buybacks, including $2 billion in the second quarter.
Stellantis (STLA) also suspended its guidance due to tariffs and said it is in contact with policymakers about the situation.
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