As the automotive industry braces for the imposition of 25% tariffs on imported vehicles announced by former President Donald Trump, Ford Motor Company has taken proactive steps to safeguard its sales and market position.

In response to the impending tariffs, Ford has launched a new employee pricing initiative called “From America, For America,” targeting U.S. consumers. This program aims to alleviate growing economic anxieties among potential car buyers while simultaneously promoting Ford’s domestic manufacturing operations.

Ford’s decision to initiate this program coincides with a period of uncertainty in the auto market. By offering vehicles at prices close to or even below dealer invoice levels, Ford is keen to stimulate sales during this turbulent time. The company’s leadership recognizes the need to provide immediate relief to consumers concerned about economic fluctuations and potential vehicle price hikes due to tariffs.

“We understand that these are uncertain times for many Americans… we want to help,” Ford stated in an announcement regarding the program. “We have the retail inventory to do this and a lot of choice for customers that need a vehicle.”

Ford’s swift response is part of a broader strategy where automotive companies seek opportunities amid chaos. Analysts suggest that companies like Ford, thanks to their extensive U.S. production capacities, are well-positioned to weather the tariff storm better than some of their competitors.

For instance, while Ford’s stock only dipped 1.4% following the tariff announcement, Stellantis saw a significant drop of 14.2%, and General Motors fell by 5.4% during the same period. This resilience highlights Ford’s strong footing within the market, particularly for trucks, which remain a best-seller in their lineup.

Ford is also supporting dealers financially through this employee pricing program, providing an added incentive for them to push sales despite tighter profit margins. Marc McEver, a Ford dealer, endorsed the initiative, stating, “It’s really exciting to see Ford step up and take the lead on this program. I think it’s a great play… It’s truly a real deal for the customer.”

Other automakers are following suit; Stellantis announced a similar program shortly after Ford, while Hyundai committed to holding vehicle prices steady for at least two months to quell consumer apprehension.

Data from Cox Automotive reveals that Ford and Stellantis face notable inventory challenges, with days’ supply for their vehicles above industry averages. Both companies recorded declines in first-quarter sales, with Stellantis down approximately 12% and Ford experiencing a 1.3% decrease year-over-year.

The national average for days’ supply of vehicles currently stands at 89 days, contrasting with the 110 to 130 days reported for Ford and Stellantis brands—higher than the ideal supply range of 60 to 80 days that typically indicates a healthy automotive market.

In light of the anticipated price hikes due to tariffs, consumer demand has surged. Cox Automotive estimates that new-vehicle sales in March reached approximately 1.59 million units, significantly outpacing prior forecasts and marking the strongest monthly performance in four years. Dealers observed a notable uptick in showroom traffic, particularly as customers rushed to make purchases ahead of the tariff implementation.

“This past weekend was by far the best weekend that I’ve seen in a very long time,” remarked Hyundai Motor North America CEO Randy Parker, highlighting a surge in customer engagement during this critical time.

The automotive industry continues to adapt to a challenging economic landscape, propelled by consumer concerns and fluctuating market conditions. Ford’s initiatives reflect a broader trend among automakers who are seeking to maintain market share and promote sales as uncertainties loom over the economy.

As the situation evolves, Ford and its competitors will need to remain agile, responding to both market demands and external pressures to sustain their business trajectories.