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Ford is boosting sticker prices on models it builds in Mexico by as much as $2,000 even after its CEO said it would hold the line on pricing to see how rivals would react to 25% auto tariffs.

The automaker expects the duties to reduce 2025 adjusted earnings before interest and taxes by about $1.5 billion on a net basis this year.

Ford Motor Co. won’t increase the price of its vehicles until it sees how competing carmakers respond to higher costs imposed by President Donald Trump’s tariffs.

Ford is preparing to raise prices on cars rolling off assembly lines starting next month if President Donald Trump doesn’t deliver on the tariff relief he has hinted at for automakers.

Tariffs of 25% on imports from Canada and Mexico threaten to exacerbate an automotive affordability crisis that is already driving buyers out of the market.

Ford Motor Co. is eliminating stock award bonuses for about half of its middle managers in an effort to boost performance as the automaker confronts declining profit and high costs.

Ford CEO Jim Farley will travel to Washington on Feb. 12 to warn Congress that the 25% tariffs President Donald Trump has proposed on Canada and Mexico would “blow a hole” in the auto industry.

Ford warned that profit may fall by $2 billion or more in 2025 on lower vehicle prices and costly new-model launches, adding to risks posed by potential new tariffs and dimming demand for plug-in cars.

Slowing electric-vehicle adoption is likely to accelerate even further as President-elect Donald Trump delivers on his promise to gut plug-in friendly policies.

Ford plans to shut down the Michigan factory that produces its F-150 Lightning plug-in pickup truck through the end of the year as demand for EVs continues to wane.