Ford Slashes Prices As Volvo, Mercedes Consider Expanding U.S. Production Amid Trump’s Auto Tariffs

The Ford Motor Company logo is seen July 20, 2008 at a dealership in Hudson, Wisconsin.

Ford announced on Thursday that it will offer widespread discounts on several vehicle models in an effort to keep car buyers engaged—just hours after President Donald Trump’s 25% tariff on auto imports took effect.

The Detroit-based car manufacturer plans to lean on its healthy inventory to offer customers thousands of dollars off. This comes as its competitors will be increasing costs due to tariffs. 

The announcement comes after Trump issued a 25% tariff on foreign-made cars that took effect after midnight on Thursday. Starting May 3^rd, the tax will apply to imported car parts, which can add to costs for U.S. manufacturers. 

According to the Anderson Economic Group, the highest impacted foreign-made cars could increase by as high as a staggering $20,000, while the least affected models would cost an additional $2,500 to $5,000. 

Ford’s new deal dubbed, “From America, For America” runs through June 3^rd. It will offer all customers the same discount given to employees.

However, the deal is different from car to car, but it “could mean savings of thousands of dollars on a vehicle,” a Ford spokesperson told the New York Post.

Additionally, discounts can be put on top of other deal promotions, and are eligible on 2024 and 2025 gas, hybrid, plug-in hybrid and diesel Ford and Lincoln vehicles. The discount does not include Ford’s Raptor models, specialty Mustangs and Bronco vehicles, the 2025 Expedition and Navigator SUVs and its Super Duty trucks. 

“In times like these, talk is cheap. At Ford, we believe in action,” the automaker said in a press release.

Other foreign automakers were also ready to discuss potential ways to avoid the tariffs. 

Volvo said it was looking to make more cars and move production of another vehicle model to its South Carolina factory — its first U.S. facility, which was built in 2018.

“We will have to increase the number of cars we build in the U.S., and surely move another model to that factory,” CEO Håkan Samuelsson told Bloomberg.

Furthermore, Volvo said they “will have to look closely” at what other it can add to U.S. production lines, Samuelsson said. 

“The global car industry, as well as Volvo Cars, is facing increased geopolitical complexity and regionalization. This makes Volvo Cars’ long-held strategy of building where we sell even more important,” a Volvo spokesperson told the New York Post.

“Right now, we are ramping up our production of the EX90 in the U.S. to grow volumes and thereby also reduce costs,” they added.

Samuelsson said during an annual shareholder meeting that Volvo needs to “learn from the Chinese how to localize.”

He also said the company will need to cut production costs to protect its profits. 

Luxury car company Mercedes said that it’s debating whether to change some of its manufacturing to the U.S. to avoid additional costs from the tariffs. 

“We’re still assessing the impacts of these tariffs,” Jörg Burzer, the automaker’s production chief, said during a company event in Germany on Thursday, according to Bloomberg. 

“We have made some plans, but flexibility is absolutely key,” he added.

Shares in Ford, Volvo and Mercedes fell on Thursday by 4.7%, 4.3% and 2.5%, respectively.

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