April 16 (Reuters) - Ford Motor F.N may raise prices of its new vehicles in May if U.S. President Donald Trump's auto tariffs are not eased, Automotive News reported on Wednesday, citing a memo to dealers.
Both U.S. and foreign automakers have rushed to alleviate consumer concerns about tariffs inflating costs at dealerships by offering price assurances and substantial discounts.
While the short-term effects of tariffs have driven up sales, U.S. automakers have privately warned lawmakers that they will be forced to drastically raise prices if the tariffs remain in place.
An analysis by the Center for Automotive Research published earlier this month revealed that Trump's 25% tariffs on automotive imports, implemented on April 3, will escalate costs for U.S. automakers by about $108 billion in 2025.
Earlier this week, Trump had floated the idea that he was considering a modification to the auto-related tariffs, suggesting he might grant exemptions on levies already in place.
(Reporting by Utkarsh Shetti in Bengaluru; Editing by Mohammed Safi Shamsi)
((UtkarshUmesh.Shetti@thomsonreuters.com;))
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