It’s Only A Matter Of Time Before Ford Raises Its Prices

Ford was among the first automakers to react to the US government’s blanket tariffs on automobiles by offering employee discounts to the buying public. However, the Blue Oval’s move to keep its prices at bay won’t take effect for too long if the situation doesn’t change soon.

According to a detailed internal memo distributed to dealers this week, which the Wall Street Journal got its hands on, Ford is preparing to increase its prices for vehicles entering the production line in May, covering a multitude of its vehicles, including America’s favorite truck, the Ford F150. Andrew Frick, president of Ford Blue and Model e, was the author of the memo prompting dealers to prepare for the price hike.

Prices Won’t Bulge Until June 2

Fortunately, buyers will still have the entire May to enjoy the pre-tariff prices of Ford since those assembled in May will only hit dealer lots in June and July. Frick said in the memo that the company would hold the prices steady by offering the previously implemented employee-discount-for-all until June 2. If President Donald Trump’s 25 percent tariff on automobiles and parts doesn’t change then, then price hikes are inevitable.

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Ford has started offering its employee pricing to the public from time to time since 2008 to draw demand from consumers. In its latest form, it covers almost all vehicles in the Blue Oval lineup, including Lincoln, both MY2024 and MY2025. There are limits, though, as only MY2024 Lincoln Navigator, Ford Super Duty, and Expedition are included, while MY2025 Explorer and Aviator units are covered.

Ford Holds Vehicle Shipments To China

It remains to be seen how the new tariffs will affect Ford’s pricing on its cars. While Ford is one of the automakers that produces most of its vehicles locally, its vehicles aren’t the most American in terms of parts used. It also doesn’t help that the Blue Oval assembles some of its popular models outside the US, including the Bronco Sport and Maverick.

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Ford has also suspended shipping its trucks, SUVs, and even muscle cars to China, as a result of President Trump’s trade war, the Wall Street Journal reports. The shipping pause covers the Ford F-150 Raptor, Mustang, Bronco, and Lincoln Navigator – all built in the US. Of note, China has retaliated against America’s hefty tariffs on Chinese-made goods by imposing taxes of its own, with prices of the F-150 Raptor reportedly skyrocketing up to $100,000.

Sources: Wall Street Journal (1, 2)