Ford will raise Mustang Mach-E prices in part due to tariffs
It’s earnings season, and automakers are warning investors about the impact tariffs will have on vehicle pricing. As first reported by Reuters, the cost of Ford's Mustang Mach-E, Ford’s electric SUV, could rise by as much as $2,000 on some models.
Ford manufactures the Mach-E as well as other non-electric models in Mexico, which are now tariffed when sold in the United States. Aside from the Mach-E, Ford estimates that it will take a $1.5 billion hit from current tariff policy.
The Trump administration has long insisted that tariffs are not paid for by the American consumer, and while the company made clear it was absorbing some of the increased cost, it could not absorb all of it.A Ford spokesperson told Reuters that the price increase is partly due to typical mid-year repricing "combined with some tariffs we are facing. We have not passed on the full cost of tariffs to our customers."
Despite the administration's partial acquiescence to automakers last week in softening the blow on auto tariffs, EV makers Rivian and Lucid have said higher costs are coming. Rivian’s CEO shared that he expects vehicle pricing to rise by "a couple of thousand dollars," while Lucid’s interim CEO said the company was expecting an 8 to 15 percent increase in overall costs due to tariffs.
While EVs have not specifically been the target of these tariffs, this administration has been unusually hostile towards them, and has worked to reverse government-funded EV initiatives, like subsidized expansions to charging infrastructure. Making matters worse, Speaker of the House Brian Johnson all but confirmed to Bloomberg recently that Congress is likely to end the EV tax credit saying, “I think there is a better chance we kill it than save it, but we’ll see how it comes out.”
It’s been posited by industry analysts that Tesla may have the least to lose (and could perhaps even gain) from the current administration's anti-EV stance, with Elon Musk even saying as such. This is in part due to the outsized effect tariffs will have on competing EV manufacturers like Ford, while Tesla’s substantial domestic production keeps the company mostly insulated.This article originally appeared on Engadget at https://www.engadget.com/transportation/evs/ford-will-raise-mustang-mach-e-prices-in-part-due-to-tariffs-164323546.html?src=rss
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