Ford Motor Co. is increasing prices on its Mexico-built vehicles by as much as $2,000, becoming one of the first automakers to announce a price hike because of tariffs.

Changes on dealer invoices became effective May 2 on the Maverick small pickup, Bronco Sport SUV and Mustang Mach-E all-electric crossover, according to the memo obtained by The Detroit News. That means affected vehicle will arrive on dealership lots in late June, the company confirmed. The Dearborn automaker attributed the hike to usual midyear pricing action as well as tariffs.

"We have not passed on the full cost of tariffs to our customers," Ford spokesperson Said Deep said in an email. "Our approach throughout this evolving situation continues to be doing what’s right for our customers — and our business."

Ford last week extended its "From America, For America" employee discount pricing campaign launched in early April through the July 4 weekend. That program remains in place and is available on the Mexico-built vehicles.

Ford previously had communicated price increases could be coming on May production in the absence of material changes on tariff policy.

But Trump last week announced changes to his auto tariffs, preventing certain duties from stacking on top of them and offering credits on imported parts for manufacturers assembling vehicles in the United States. Still, 25% import taxes on more than 100 categories of auto parts, from engines and steering wheels to hinges and more began being collected on Saturday after a 25% levy on imported vehicles took effect in early April. Ford this week estimated it's exposed to $2.5 billion in tariff costs in 2025, but expects to offset about $1 billion of that.

"We have to watch what our competitors do," Ford CEO Jim Farley said last week about pricing increases following Trump's tariff adjustments. "That's the key. Half the industry in the U.S. is imported, and they have $5,000 to $10,000 costs. Will they just absorb those? Will they pass them on to customers? That will be a big decision, because the pricing decision is a competitive decision."

Analysts have warned that automakers won't be able to absorb all of the costs created by tariffs, and it will result in price increases for U.S. consumers, which could affect demand and production of new vehicles. The East Lansing-based Anderson Economic Group has projected price increases from $2,000 to $15,000 per vehicle.

Certain Maverick trims will see an increase of up to $1,150 on their manufacturer's suggested retail price as well as a $100 hike in destination fee and increases on certain options. Bronco Sport's increase is up to $1,200 on the Outer Banks model, and certain packages also are more expensive. Mach-E's increase is up to $2,000 with certain options also seeing an increase.

In April, Maverick sales rose 67%, Bronco Sport increased 55% and Mach-E fell 40% with the company citing low inventory ahead of a model changeover.

Ford Chief Financial Officer Sherry House this week said to offset tariffs, Ford has begun using bonded trucks transporting vehicles and parts from Mexico to Canada through the United States, stopped shipments to China because of retaliatory levies and adjusted production of the China-built Lincoln Nautilus. But no production changes had been made to plants in Mexico, she said.

The company also expects that because 80% of the vehicles it sells in the United States are built here, it has the opportunity to increase market share from companies more exposed to the import taxes.

Reuters first reported on the price increases.

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