Ford will be raising prices on several of its Mexico-manufactured models, including the Mustang Mach-E electric SUV, in direct response to tariffs imposed by the Trump administration. The move marks one of the first major price adjustments by a legacy automaker following the renewed trade tensions and is expected to affect vehicles built after May 2, 2025.
The price of the Mustang Mach-E will increase by as much as US$2,000 on select trims, depending on configuration. Ford says the price hike is the result of “typical mid-year pricing actions” combined with “some tariffs we are facing,” according to a report by Reuters. However, the automaker emphasized it is not passing the full cost of the tariffs on to consumers.
The Mach-E, which has been assembled in Mexico since its launch, has been central to Ford’s EV strategy. But the SUV already faced financial headwinds, with Ford losing billions as it ramps up its electrification program. These new tariff-related costs could make the Mach-E less competitive in a tightening EV market — especially if the $7,500 federal EV tax credit is repealed, something both President Trump and House Speaker Mike Johnson have hinted may soon happen.
The Mustang Mach-E isn’t the only vehicle impacted by the new tariffs. Ford is also raising prices on the Maverick — one of the most affordable hybrid pickups in the market — and the Bronco Sport SUV, which shares a production line with the Mach-E in Mexico.
Earlier this week, Ford disclosed that the administration’s trade policies would add approximately $2.5 billion in costs through the remainder of 2025. While the company believes it can mitigate about $1 billion of that, the remaining impact is now beginning to show up on dealership price tags.
Ford’s response comes as other automakers, including General Motors, Rivian, and Lucid, also prepare for price increases. GM anticipates up to $5 billion in tariff-related costs, while Rivian CEO RJ Scaringe recently stated prices could climb by “a couple of thousand dollars” per vehicle.
Although the White House slightly softened the tariffs on imported auto parts last week — allowing automakers some leeway through U.S.-based production credits — the 25% tariff on finished vehicle imports remains in place. Analysts warn that if these tariffs persist, U.S. vehicle sales could fall by more than a million units annually.
