U.S. Auto Tariffs – How Does This Affect Ford?

What Is an Auto Tariff?

An auto tariff is a tax levied on imports relating to the automotive industry. While the tax is initially paid by the importer, it is often passed on, at least in part, to the consumers. The 25% tariffs imposed by President Trump affect new cars and select automotive parts and raw materials imported to the U.S. from abroad. Despite efforts by Ford and other parties to mitigate the blow, prices are expected to rise significantly.

Ford CEO Jim Farley warns against Trump's tariffs for a reason, as we shall discuss below. Keep reading for the lowdown on the anticipated effects of the auto tariffs – and the steps you, as a buyer, can take to avoid bearing the brunt of these tariffs.

Are the U.S. Auto Tariffs Permanent?

When the Trump administration first levied the 25% auto tariffs in April 2025, they were presented as a measure to bring manufacturing back to America. It was suggested more than once that these import taxes would not change anytime soon, if ever. A month later, however, the American president made some revisions to the policy, providing rebates and exemptions for certain automakers in order to give them more time to adjust to the reality of the tariffs.

Since then, we have seen further changes in tariff policy. In May 2025, the United Kingdom and the U.S. settled on a 10% tariff for U.K.-built vehicles, applicable to a quota of 100,000 models annually. In August 2025, the European Union secured a trade agreement that included a reduction in tariffs to 15% for its automotive exports. In September 2025, the same rate was applied to Japanese automobiles and car components.

These updates indicate that the upward pressure on automotive prices has eased somewhat, although it has not disappeared. If additional countries strike trade deals, the pressure may be further lessened. However, the 10% and 15% levies are still higher tariff levels than the industry had factored in before the introduction of automotive tariffs in April. Price increases are here to stay for the foreseeable future, but their magnitude has yet to be settled.

In the meantime, it helps to have a dependable dealership like Capital Ford of Wilmington that you can turn to for updates directly from the OEM.

What Can Car Shoppers Do To Combat the Impact of Auto Tariffs?

The tariffs on cars and parts will have an impact on prices, no matter what. However, there are plenty of ways to ensure your next vehicle is within reach financially. Choosing an automaker that primarily manufactures its automobiles in America can shield you from dealing with the full force of price increases. Ford already produces about 80% of its models in the U.S. and is dedicated to increasing this percentage. Its efforts to bring more manufacturing into the domestic sphere are already being rewarded with tariff relief from the Trump administration.

Along with being well-positioned to provide stability for its customers, Ford is working hard to cushion the effects of tariffs in the short term through rotating offers, incentives, and special programs. For example, certain customers can take advantage of the Ford Recognition Programs, which we highlight below.

The best time to buy or lease a car is now – or as soon as possible – before the ramifications of the auto tariffs fully hit the auto industry. Plus, availability could dwindle if automakers struggle to afford their regular flow of imports and customers rush to get their hands on less expensive, pre-owned vehicles.