Ford Motor has increased prices on three of its México-produced electric vehicles (EVs), including the Mustang Mach-E, due to tariffs imposed by U.S. President Donald Trump. The automaker announced the price hikes on May 7, 2025, citing mid-year pricing adjustments and the economic pressures of the tariffs, according to a Informe de Reuters. This move signals broader challenges for EV owners and the automotive industry as trade policies reshape costs and production strategies.

Price Hikes Hit Popular EV Models

Ford has raised prices by up to $2,000 on the Mustang Mach-E electric SUV, Maverick pickup, and Bronco Sport, all manufactured in Mexico. The adjustments, effective May 2, 2025, arrive at dealer lots by late June. A Ford spokesperson explained the reasoning: “The price hikes reflect ‘usual’ mid-year pricing actions, combined with some tariffs we are facing. We have not passed on the full cost of tariffs to our customers.” Despite this, the $2,000 increase could strain EV buyers already navigating a competitive market.

The Mustang Mach-E, a key player in Ford’s EV lineup, features a 70 kWh or 91 kWh battery, delivering ranges between 230 and 300 miles per charge, depending on the trim. The price hike may push its starting cost—previously around $43,000—closer to $45,000, potentially impacting affordability for budget-conscious buyers.

Tariffs Drive Industry Shifts

Trump’s tariffs on foreign auto parts and imported vehicles aim to boost U.S. manufacturing but have sparked uncertainty. Ford estimates the tariffs will add $2.5 billion in costs for 2025, though it plans to offset $1 billion through strategic adjustments. Rival General Motors (GM) projects even higher costs, between $4 billion and $5 billion, with a 30% reduction in exposure to foreign imports.

Ford’s strong U.S. manufacturing base—79% of its U.S.-sold vehicles are assembled domestically—positions it better than competitors like GM (53% U.S.-assembled). However, Ford’s reliance on Mexico for affordable models like the Maverick exposes it to tariff pressures. Most major U.S. automakers face similar price hikes on cheaper Mexico-made vehicles, while pricier models from China and South Korea also see levies. GM, for instance, faces $2 billion in costs on Korean imports alone.

The White House has not rescinded a 25% tariff on the 8 million vehicles the U.S. imports annually, adding further strain. Analysts warn that U.S. auto sales could drop by over 1 million vehicles yearly if tariffs persist, as higher costs deter buyers.

Operational and Economic Impacts for EV Owners

For EV owners, the price increase could shift purchasing decisions. The Mustang Mach-E’s higher cost may push buyers toward alternatives like the Tesla Modelo Y, which starts at $44,990 and offers a comparable 310-mile range. Charging infrastructure and operational costs remain unaffected, but the upfront price hike could slow EV adoption, especially for first-time buyers.

Economically, the tariffs highlight a broader trend: automakers are rethinking supply chains. Ford and GM may accelerate plans to shift production to the U.S., but this requires significant investment in factories and workforce training—costs that could trickle down to consumers over time.

EVXL’s Take: A Bumpy Road Ahead

Ford’s price hike is a speed bump for EV enthusiasts, but it’s not a dead end. The Mustang Mach-E still offers solid range and performance, even if your wallet takes a hit. With tariffs stirring the pot, we might see more automakers channel their inner Uncle Sam and bring production stateside—potentially a win for U.S. jobs, but a challenge for your bank account. EVXL predicts buyers might hold off for end-of-year sales, hoping for rebates to soften the blow. Until then, keep an eye on charging stations and maybe binge some Ford v Ferrari to remind yourself why you love the brand—tariffs or not.