Ford CEO Warns: Tariffs Could Drive Vehicle Prices Up by $5,000 This Summer

As U.S. tariffs on foreign vehicles and auto parts persist, Ford’s Jim Farley says your next car might cost a lot more.

In a candid and urgent message to American consumers and policymakers, Ford Motor Company CEO Jim Farley has sounded the alarm: the Trump administration’s continued tariffs on imported vehicles and components could drive up prices across the entire U.S. auto industry by as much as $5,000 per vehicle—and those hikes may start as soon as this summer.

 

Tariffs Threaten Affordability of Popular Models

Speaking at a recent press briefing, Farley emphasized that affordable vehicles like the Ford Maverick pickup and Bronco Sport SUV—currently produced in Mexico—would become significantly more expensive to build in the U.S. due to elevated labor and materials costs. Repatriating manufacturing of these models under current tariffs would result in substantial price increases, challenging Ford’s mission to offer cost-effective vehicles for middle-class Americans.

“The goal is to keep cars affordable,” Farley said. “But current trade policies make that nearly impossible without shifting the financial burden onto consumers.”

 

Imported Vehicles Make Up Half of U.S. Auto Sales

Currently, roughly 50% of vehicles sold in the U.S. are imported, including models from both foreign and domestic automakers. With tariffs remaining in place, all automakers—Ford included—are facing higher operational costs that will inevitably get passed down to buyers.

Experts predict that vehicles imported from countries like Mexico, Canada, Germany, Japan, and South Korea will be the hardest hit, although even domestically manufactured vehicles will be affected due to the global nature of the supply chain.

 

Supply Chain and Auto Parts Costs Rising

It’s not just the cars themselves. Parts and components—such as transmissions, electronics, batteries, and semiconductors—that originate overseas are also subject to the same import tariffs. These additional costs ripple through the entire industry, impacting everything from manufacturing timelines to dealer inventory.

 

No Relief in Sight: Tariffs Could Last Years

 

According to Farley, the outlook isn’t improving anytime soon. He warned that tariffs are likely to stay in place for at least three more years, given the current U.S. political environment. With that forecast, automakers may be forced to rethink production strategies, adjust model lineups, or scale back innovation to cope with shrinking margins.

 

What It Means for You

 

If you’re in the market for a new car, now might be the time to buy. Industry analysts are urging consumers to consider making purchases sooner rather than later, as vehicle prices could jump by thousands of dollars in a matter of months. The models most likely to see price hikes include:

• Ford Maverick

• Ford Bronco Sport

• Toyota RAV4

• Hyundai Tucson

• Volkswagen Tiguan

• Honda CR-V

The automotive industry is no stranger to economic challenges, but prolonged tariffs represent a significant threat to affordability, especially for working-class buyers. As automakers like Ford push for clarity and relief, the decisions made in Washington over the next several months could reshape how and where our vehicles are built—and how much we pay for them.