Much ado has been made about the potential impacts of 25 percent tariffs placed on imported automobiles by U.S. President Donald Trump in early April, and for good reason – many have feared that those levies would result in massive price increases in regard to new vehicles. Thus far, we have seen the prices of some vehicles increase – including a trio from Ford – but The Blue Oval has also been quick to tout the fact that it builds far more vehicles in the U.S. than most of its rivals. Turns out, that’s part of what’s helping it avoid the cost impacts of tariffs better than most as well.
New data from the financial analysis firm Guggenheim Partners shows that Ford is the second-least impacted automaker when it comes to the average cost increase per vehicle it’s facing due to tariffs at the moment, according to Barron’s. As we can see in the chart above, only Tesla is impacted less than The Blue Oval, followed by General Motors, Stellantis, Honda, Toyota, Nissan, Subaru, Hyundai/Kia, Volkswagen, BMW, and Mercedes – with the latter German brands facing significant cost impacts on a per model basis.
This new data prompted Guggenheim analyst Ronald Jewsikow to cut his estimate for per-car tariff impacts, down from an average of around $6,000 per vehicle to a bit over $3,000 – or around six percent of the average price of a new vehicle. It’s worth noting that suppliers and automakers will undoubtedly absorb some of those costs (as Ford has already done), though the per-unit impact can also vary greatly by model and manufacturer – anywhere from zero to 17 percent. Jewsikow forecasts that Ford will see a $1,277 cost increase on a per-unit basis, and notes that these higher costs could wind up resulting in one million fewer vehicles being sold in the U.S. in 2025.
Ultimately, Ford CEO Jim Farley expects tariffs to remain in place for at least the next three years, and recently admitted that the company would consider moving production to the U.S. if they become more permanent. As Ford Authority previously reported, The Blue Oval has increased the prices of three of its imported models sold in the U.S. as a response to these tariffs – the Ford Maverick, Ford Bronco Sport, and Ford Mustang Mach-E (all of which are assembled in Mexico), but not the China-based Lincoln Nautilus, at least, for now. Price increases for the 2025 Mustang Mach-E will range from $1,500 up to $2,500, with the Bronco Sport increasing somewhere between $120-$1,510, and the Maverick is getting $645-$1,150 more expensive.
Comments
So what does Ford do? Implement Employee Pricing, which those of us in the know know that it’s scammy. But most are ignorant and don’t. Once that goes away (hopefully on July 5), Ford might have some of the best deals on offer.
Yes we know you need the best deal before you can afford to purchase. Try working harder like I do.
Glad to see employee pricing because many not to smart people who get taken can now get a fair deal. Is it the best, like at the end of the year with larger rebates, probably not, but it helps and takes some of the negativity away from the purchase process.
I prefer to wait until 2029 to buy a new domestic vehicle, since by that year the next President will remove the tariffs.
Or even earlier, if the actuarial tables catch up with the current occupant of the White House.
49.9% voted for the clown Rump and we all are suffering worse than ever! Tariffs don’t work, never have never will. Meanwhile war in ukraine still going on. Grocery proces and fuel prices continue to climb! Impeach the 34 time felon now!
Gas prices down, CPI down, wholesale goods prices down, major indicators rising, real wages up. My God, the suffering! (Insert clown emoji here)
Ukraine started under Biden, he had years to stop it, but he didn’t. Inflation is now down from the 9% Biden had. Consumer prices rose 2.3% in April from a year ago, the Labor Department said Tuesday, down from 2.4% in March and the smallest increase in more than four years. On a monthly basis, prices rose modestly, increasing 0.2% from March to April after falling 0.1% the previous month, the first drop in five years. Gas is down 50 cents from a year ago. Enjoy the next 4 years, you will love it.
You’re funny.