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Ford Motor may increase prices on its new vehicles if auto tariffs under U.S. President Donald Trump remain in effect, according to a dealer memo reviewed by Reuters.

The Dearborn, Michigan-based automaker began offering significant discounts across its lineup earlier this month, with deals running through June 2.

While the program will continue, the memo notes that pricing on vehicles produced in May and later could be adjusted, according to Yahoo Finance.

To ease consumer fears over rising dealership prices due to tariffs, both domestic and international automakers have responded with aggressive discounts and promises to hold pricing steady, Automotive News reported.

Although these strategies have temporarily boosted sales, U.S. carmakers have quietly cautioned lawmakers that sustained tariffs could eventually lead to significant price hikes across the board, Yahoo Finance said.

According to the memo, Ford has confirmed that it will not raise the sticker price on any vehicles currently in stock at Ford or Lincoln dealerships, the Kelley Blue Book said.

A recent analysis from the Center for Automotive Research, published earlier this month, estimates that President Trump’s 25% tariffs on automotive imports—enacted on April 3—will cost U.S. automakers roughly $108 billion in 2025, according to The Economic Times.

Earlier this week, President Trump hinted at a possible change to the auto-related tariffs, suggesting he may introduce exemptions to some of the existing levies, USA Today said.

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