Ford Says Trump’s Auto Tariffs Unlikely to Trigger Major Price Hikes
Despite an estimated $1.5 billion hit from new auto tariffs this year, Ford says it doesn’t anticipate a sharp rise in car prices for American consumers.
The automaker shared the update during its first-quarter earnings call, where it also reported a notable dip in profits. According to Ford CFO Sherry House, vehicle prices in the U.S. may inch up by just 1% to 1.5% in the second half of 2025 due to the tariffs – far less than some had feared.
The tariffs, imposed by former President Donald Trump, include a 25% tax on imported cars and most auto parts. While some costs can be offset through trade loopholes or supply chain adjustments, industry experts say automakers are still bracing for long-term impacts.
House noted that while the broader industry could start scaling back buyer incentives or increase sticker prices for new models this fall, Ford hasn’t released any specific pricing updates yet. She added that a general slowdown in auto sales is expected later this year, following a surge in purchases earlier in April as consumers rushed to beat the tariff deadline.
Ford, which manufactures over 80% of its U.S. vehicles at domestic facilities, may be better positioned than rivals like General Motors, which forecast a $4–5 billion tariff-related loss this year.
Due to the ongoing volatility, Ford has withdrawn its full-year earnings forecast. CEO Jim Farley also recently confirmed the company will continue its “employee pricing” offer through July 4, but warned that the deal may not extend beyond that, especially as Ford clears out its pre-tariff inventory.
