Ford provides price reductions on vehicles as soon as tariffs on cars are implemented.

Ford Motor announced on Thursday that it will be reducing prices on most vehicles to equal levels.

The tariffs, which took effect on Thursday, will impact vehicles imported from Mexico, Canada, Japan, Germany, and other countries. This is expected to increase prices for new cars and trucks by 25% and potentially decrease demand.

Roughly half of the vehicles sold in the US each year are manufactured in other countries. Mexico and Canada are key sources of these vehicles. The US, Canada, and Mexico have had free trade agreements for 30 years, allowing car manufacturers to freely move parts and vehicles between the three countries.

Ford’s new initiative, called “from America, America,” aims to reduce the large inventory of unsold vehicles. In February, Ford had more cars in stock compared to three other brands, as reported by Cox Automotive.

The price cuts by Ford will apply to all new 2024 and 2025 models, with the exception of specific versions like the Bronco Sport-Utility vehicles, Mustang sports car, and Super Duty F series pickup. Various other models are also excluded from the discounts.

“Consumers will now pay the same prices as we do,” stated Rob Kaffle, Ford’s Director of U.S. Sales and Dealership Relations.

In addition to the price reductions, Ford is extending an incentive program offering free home chargers and installation for buyers of new electric models until June 30th.

As of the end of March, Ford had over 568,000 vehicles in stock, representing an 8% increase from the previous year.