President Donald Trump’s 25% tariffs on auto imports to the U.S. went into effect at 12:01 a.m. EDT on Thursday. Hours later, Ford Motor Company responded by announcing a new incentive for would-be car buyers: employee pricing for customers.
“We understand that these are uncertain times for many Americans,” wrote Rob Kaffl, Ford’s director of U.S. sales and dealer relations, in a company blog post.
The post did not disclose the value of the employee discount Ford is making available to customers. A company spokesperson told Fortune by email that the vehicle price is below the dealer invoice price, and “consumers can save thousands depending on the vehicle.”
The promotion is through June 2. Eligible cars include a range of 2024 and 2025 gas, hybrid, plug-in hybrid, and diesel Ford and Lincoln vehicles. But it excludes Raptors, specialty Mustang and Bronco vehicles, the 2025 Expedition and Navigator SUVs and Super Duty trucks. For potential electric retail customers, the employee pricing is offered on top of the Ford Power Promise, a customer support program for EV owners, further extended through June 30.
Ford CEO Jim Farley said during the company’s fourth-quarter earnings call in February that hefty import duties would cost the U.S. auto industry billions of dollars in added profit headwinds. The biggest winners from the tariffs, Farley suggested, won’t be domestic automakers but Asian rivals that would face little additional impact.
The new tariffs are estimated to raise the average cost of a car imported from another country by thousands of dollars. In addition, repairs for cars that currently use foreign-made parts are expected to cost more money. The Trump administration expects tariffs to lead to domestic manufacturing, and raise $100 billion in revenue annually. However, some experts stress the strain tariffs will place on the auto industry and the consumer.
“With 25% increases in the cost of parts, inflation would surge in maintenance and repair and insurance, which vehicle owners are already struggling to handle,” Jonathan Smoke, Cox Automotive’s chief economist said in a statement.
In an industry note on Wednesday, Wedbush Securities analysts said if the 25% tariff on autos and auto parts from outside the U.S. stay in place, it will change the paradigm for the U.S. auto industry for years to come. “We believe the price impacts from this tariff announcement could result in demand destruction of 15%-20% in 2025 for new auto purchases alone based on our estimates,” according to the analysts.
Ford shares were down about 4% as of mid-morning on Thursday.