Ford Motor may hike prices if Trump's auto tariffs persist, memo says

FordMotormay raise priceson itsnew vehicles if President Donald Trump‘s autotariffscontinue, according toa memosent todealerson Wednesday that was reviewed by Reuters.

The Dearborn, Michigan, automaker offered deep discounts across its lineup starting earlier this monththrough June 2. The program will continue, but pricing on new models produced in May and beyond may change, the memo said.

Automotive News first reported news of the memo.

“Customers will have a lot of choices, and we have plenty of inventory to choose from through June 2. The tariff situation is dynamic and we continue to evaluate the potential impact of tariff actions,” aFordspokesman said, adding that if prices changed on vehicles produced in May, customers likely would not see an increase until early July.

Both U.S. and foreign automakers haverushed to alleviateconsumer concerns about tariffs inflating costs at dealerships by offering price assurances and substantial discounts.

While the short-term effects of tariffs have driven up sales, U.S. automakers have privatelywarnedlawmakers that they will be forced to drastically raise prices if the tariffs remain in place.

“In the absence of material changes to the tariff policy as articulated to date, we anticipate the need to make vehicle pricing adjustments in the future, which is expected to happen with May production,”Fordexecutive Andrew Frick said in the memo.

Fordwill not increase the sticker price on any vehicle currently in inventory atFordand Lincoln dealers, the memo said.

Ananalysisby the Center for Automotive Research published earlier this month revealed that Trump’s 25% tariffs on automotive imports, implemented on April 3, will escalate costs for U.S. automakers by about $108 billion in 2025.

Ford is among the best-placed automaker to weather tariffs, as it produces about 80% of its U.S.-sold vehicles domestically.

Earlier this week, Trump had floated the idea that he wasconsidering a modificationto the auto-related tariffs, suggesting he might grant exemptions on levies already in place.