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Ford is warning its dealers that prices will likely rise due to President Donald Trump's import tariffs, which went into effect April 3. The automaker said the tariffs, which are expected to remain in place for some time, could be passed down to consumers starting in June.
“We will not increase the MSRP (manufacturer’s suggested retail price) for any vehicle currently in inventory with our Ford and Lincoln dealers,” Andrew Frick, president of the Ford unit overseeing retail sales, said in the memo. “However, 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.”
Ford confirmed the memo’s accuracy, adding that it is not expecting any imminent change in retail prices at its dealerships. That’s because cars produced in May would not arrive at dealerships until June or later.
Automakers, dealers and American car buyers have been bracing for the impact of tariffs, which could upend the market for car purchases in the coming weeks.
Experts say the 25% tariff could raise the cost to build or import cars by thousands of dollars each, as well as reducing the supply of vehicles available for sale. And with the administration also planning to put tariffs on auto parts as soon as next month, that could raise the price of cars even higher since all vehicles built in the US contain some imported parts.
To help assure customers, Ford previously announced an “employee pricing” discount offer for buyers on most of its vehicles April 3, the day that tariffs on imported cars took effect. But the memo from Ford to its dealer network is a sign that it could soon be unavoidable for Americans to dodge the impact of tariffs on car prices.
Still, there is some hope, since Trump indicated earlier this week he might change the policy on tariffs on auto parts.
