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Ford (F+4.66%) is extending a “handshake deal” to American consumers as new auto tariffs went into effect Thursday morning.
The automaker is offering employee pricing discounts to all customers starting immediately. The deal applies to a wide selection of 2024 and 2025 Ford and Lincoln models including gas, hybrid, plug-in hybrid, and diesel vehicles. It excludes Raptors, specialty Mustang and Bronco models, the 2025 Expedition and Navigator SUVs, and Super Duty trucks.
For those looking to buy an electric vehicle, the discount stacks on top of the company’s Ford Power Promise promotion, which has been extended through June 30. That offer includes a complimentary home charger and standard installation.
“We understand that these are uncertain times for many Americans. Whether it’s navigating the complexities of a changing economy or simply needing a reliable vehicle for your family, we want to help,” the company said on its website about the new initiative.
The deal comes as Trump’s new 25% taxes on imported vehicles went into effect this morning. JPMorgan (JPM-0.63%) analysts expect the auto industry to take a $82 billion annual hit, assuming that automakers absorb the cost of the tariffs. If they decide to pass the costs on to consumers, light-vehicle prices could rise by up to 11.4%.
Ford’s promotion also follows Trump’s announcement on Wednesday of what he calls “reciprocal tariffs” on 50 countries, along with a baseline 10% tariff on imports from all other nations. The new tariffs have rattled the markets, with the Dow plunging 1,135 points. Stocks in the retail, footwear and apparel, tech, and airlines sectors also took a hit Thursday morning.
Ford shares fell more than 4% in intraday trading. Stellantis (STLA+6.37%) shares tumbled 7%, while GM (GM+3.46%) stock dropped 3%.
Stellantis has already temporarily laid off 900 U.S. employees as it pauses production at two plants abroad.
“With the new automotive sector tariffs now in effect, it will take our collective resilience and discipline to push through this challenging time,” the company said in a memo emailed to employees Thursday morning. “We are continuing to assess the medium- and long-term effects of these tariffs on our operations but have decided to take some immediate actions, including temporarily pausing production at some of our Canadian and Mexican assembly plants.”