NEW YORK: Ford Motor may raise prices of its new vehicles in May if US President Donald Trump’s auto tariffs are not eased, Automotive News reported, citing a memo to dealers.
Both US and foreign automakers have rushed to alleviate consumer concerns about tariffs inflating costs at dealerships by offering price assurances and substantial discounts.
While the short-term effects of tariffs have driven up sales, US automakers have privately warned lawmakers that they will be forced to drastically raise prices if the tariffs remain in place.
An analysis by the Centre for Automotive Research published earlier this month revealed that Trump’s 25% tariffs on automotive imports, implemented on April 3, will escalate costs for US automakers by about US$108bil in 2025.
Earlier this week, Trump had floated the idea that he was considering a modification to the auto-related tariffs, suggesting he might grant exemptions on levies already in place. — Reuters
