Ford warns dealers: Price increase in June possible due to Trump's tariffs

Ford warns dealers: Price increase in June possible due to Trump's tariffs

Ford is warning its dealers that the tariffs are likely to increase prices in the coming months. This is the latest impact of import taxes on Americans' finances.

Tariffs on imported cars

The 25% tariffs on all imported cars enacted by President Donald Trump took effect on April 3. In a memo to Ford dealers first published by Automotive News As reported, the automaker informed its dealers that the cost of these tariffs will likely be passed on to the prices of some vehicles delivered starting in June. This is because “certain tariffs are expected to remain in effect for at least a period of time.”

Pricing and availability

“We will not increase the suggested retail price (MSRP) for any vehicle currently in the inventory of our Ford and Lincoln dealers,” Andrew Frick, president of the Ford unit responsible for retail sales, said in the memo. “However, in the absence of significant changes to tariff policy as articulated to date, we anticipate that we will need to make vehicle pricing changes in the future, which is expected to occur with production in May.”

Ford confirmed the accuracy of the memo to CNN, adding that it does not expect any short-term changes to retail prices at its dealerships. The vehicles produced in May would not arrive at dealers until June or later.

Market and customer reactions

“Customers will have many choices, and we have plenty of inventory to choose from through June 2,” Ford said in a statement. “The situation with tariffs is dynamic and we are continually evaluating the potential effects of the tariff measures.”

Automakers, dealers and American car buyers are bracing for the impact of tariffs that could roil the auto-buying market in the coming weeks. Experts say the 25% tariff could significantly increase the cost of building or importing vehicles. This could also reduce the range of available vehicles. With the administration planning to impose tariffs on auto parts as early as next month, car prices could continue to rise because all vehicles made in the U.S. contain some imported parts.

Ford actions and current developments

Some American car buyers rushed to buy cars when the tariffs came into view. To reassure customers, Ford had already announced an "employee price" discount offer for buyers of most of its vehicles on April 3, the day the tariffs on imported cars took effect. But Ford's memo to its dealer network shows that it may soon be inevitable for Americans to feel the impact of tariffs on car prices.

There is a small glimmer of hope, however, as Trump hinted earlier this week that he possibly the tariff policy for auto parts could change. "I'm looking at something that might help some automotive companies because they ... need parts made in Canada, Mexico and other places, and they need a little more time," Trump said in remarks to reporters in the Oval Office. "They'll get them here, but they need a little more time."