Ford has raised prices by up to US$2,000 for the Mustang Mach-E SUV and Maverick pickup due to new import taxes on vehicles made in Mexico.

This price increase will affect vehicles built after May 2, 2025.

The decision comes after Ford revealed the new tariffs could add US$2.5 billion to its expenses through the end of 2025.

The price adjustments come amid discussions regarding the US$7,500 federal EV tax credit.

President Donald Trump and House Speaker Mike Johnson have suggested that this credit could be reduced or eliminated.

These potential changes may further complicate the financial landscape for automakers like Ford, which is already facing pressures in its electric vehicle division.

🔗 Source: TechCrunch

🧠 Food for thought

1️⃣ Auto tariffs create predictable cost increases, now reaching consumers

Ford’s price increases of up to $2,000 reflect a well-documented pattern in how tariffs impact vehicle costs.

Previous analyses projected that tariffs would increase new vehicle prices by an average of $2,750, with imported vehicles potentially rising by $3,700 due to similar trade actions 1.

When the Trump administration first imposed auto tariffs, studies predicted that a $30,000 vehicle could see price increases of $6,400, raising monthly payments by approximately $120 2.

The current price hikes on the Mach-E and Maverick represent Ford’s direct response to these tariff costs, demonstrating how trade policies quickly translate to consumer price points.

These increases are particularly challenging for EVs like the Mach-E, which were already struggling with profitability issues before the additional tariff burden.

2️⃣ Contrasting corporate strategies reveal differing tariff approaches

While Ford is passing costs directly to consumers through price increases, GM recently announced it would absorb $4-5 billion in tariffs to maintain current vehicle pricing 3.