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

By Kalea Hall, Nora Eckert and Utkarsh Shetti

(Reuters) - Ford Motor may raise prices on its new vehicles if U.S. President Donald Trump's auto tariffs continue, according to a memo sent to dealers on Wednesday that was reviewed by Reuters.

The Dearborn, Michigan, automaker offered deep discounts across its lineup starting earlier this month through 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," a Ford spokesman 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 have rushed to alleviate consumer 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 privately warned lawmakers 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,” Ford executive Andrew Frick said in the memo.

Ford will not increase the sticker price on any vehicle currently in inventory at Ford and Lincoln dealers, the memo said.

An analysis by 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 was considering a modification to the auto-related tariffs, suggesting he might grant exemptions on levies already in place.

(Reporting by Kalea Hall and Nora Eckert in Detroit, Utkarsh Shetti in Bengaluru; Editing by Mohammed Safi Shamsi and Marguerita Choy)