🇺🇸 Tariffs, EVs, and the Mustang Mach-E: Why Ford Isn’t Backing Down
With the U.S. government rolling out new 25% tariffs on imported vehicles, many automakers are scrambling to figure out how to adapt. But for Ford, the situation is a little different—and a bit more complicated.
You see, Ford actually has less exposure to these tariffs compared to other car companies. That’s because much of its production is already based in the U.S. However, there are a few major exceptions that could put some real pressure on the brand.
Two of Ford’s most popular small vehicles—the Maverick pickup and Bronco Sport SUV—are built in Mexico. That’s a problem under the new tariff rules. But an even bigger concern? The Mustang Mach-E, Ford’s flagship electric SUV, is also manufactured south of the border. And that means it will be hit with the full force of the 25% tariff. Despite this challenge, Ford isn’t backing away from the Mach-E. In fact, it’s standing firm.
On a recent earnings call, Andrew Frick, who leads Ford’s Blue and Model e divisions, was asked if the company plans to cut back production of the Mach-E because of the new tariff costs. His answer? A confident no.
“It’s business as usual. We do not plan on making any adjustments [or] lowering the production,” Frick said.
So why is Ford so committed to continuing Mach-E production, even though it now costs more to bring it into the U.S.? There are several smart reasons behind this move.
Mach-E Is Still Selling Well
First, the Mustang Mach-E is still performing well in the market. After a series of price cuts since its original launch, the electric SUV has maintained solid sales—especially impressive considering it’s now in its fourth year. In fact, Ford dealerships have very little inventory on hand, which is a strong signal that demand remains healthy.
And that demand isn’t limited to the U.S. Frick noted that there’s unmet demand in Europe, meaning that Ford has a backup plan if things slow down here. By increasing exports to Europe, the company can keep production running smoothly at its plant in Mexico.
But here’s the real reason Ford won’t slow down Mach-E production: regulatory compliance. Automakers are required to meet strict emissions standards. These include:
- Corporate Average Fuel Economy (CAFE) targets
- Zero Emission Vehicle (ZEV) quotas
In simple terms, if a car company sells a lot of big gas-guzzling trucks and SUVs (and Ford definitely does), it needs to balance that out by selling a certain number of clean, electric vehicles.
If they don’t? They have to buy expensive emissions credits from companies like Tesla that do meet the targets.
That makes the Mach-E not just a cool electric SUV—it’s Ford’s emissions insurance policy. “It’s essential to our overall compliance,” Frick explained. So even with tariffs raising the cost of each imported Mach-E, Ford has a strong incentive to keep it flowing into U.S. showrooms.
U.S. Production Is the Long-Term Goal
Of course, Ford would prefer to build more of its EVs in the United States. That would not only help avoid tariffs but also support American jobs and reduce supply chain complexity.
The F-150 Lightning, Ford’s all-electric truck, is built in the U.S., but it’s more expensive and has lower sales volume than the Mach-E. Right now, the Mach-E is the real workhorse when it comes to hitting EV targets.
So until Ford ramps up domestic EV production with models that can match the Mach-E’s numbers, it’s sticking with its current setup—even if it comes with a tariff bill.
In the race to electrification, automakers like Ford have to juggle more than just consumer demand. They need to balance global supply chains, shifting regulations, and complex environmental goals—all at once.
Ford’s decision to keep importing the Mach-E despite new tariffs shows just how critical EVs have become—not just as cars to sell, but as tools to meet broader emissions and policy objectives.
So if you’re wondering why the Mustang Mach-E is still rolling into American driveways, tariffs and all—that’s your answer. It’s not just about the vehicle itself. It’s about the bigger picture.
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