Ford Motor might raise prices on new cars if the U.S. government’s new auto tariffs don’t go away. A memo sent to dealers says cars built from May onwards could cost more. Customers might start seeing these higher prices by early July.

Right now, Ford is offering big discounts through June 2. So if you’re planning to buy a Ford, now might be the best time.

Ford says they’re watching the situation closely. But behind closed doors, they’ve told lawmakers that if these tariffs stay, they’ll need to raise prices. According to a new report, Trump’s 25% tariff on imported cars could end up costing U.S. carmakers over $100 billion this year.

Ford is in a slightly better position than some other automakers. That’s because 80% of the cars it sells in the U.S. are built right here. But even then, rising costs can’t be ignored.

Index on Edge Over Ford

Ford closed at $9.40, down 0.53%, a small dip, but part of a bigger slide. Over the past month, the stock’s dropped more than 5%, underperforming both the S&P 500 (down 4.17%) and its Auto-Tires-Trucks sector (down 3.98%). The whole market is shaky, with the Dow down 1.73% and the Nasdaq falling 3.07%.

Ford’s upcoming May 5 earnings report isn’t helping confidence. Analysts expect a 2-cent loss per share and a 12% revenue drop from last year. Full-year earnings are projected to fall 27%.

Zacks just cut Ford’s stock to a “sell” rating. Even with its low price, investors are uneasy. Since Ford is part of major indexes like the S&P 500 and Dow, weak performance here could hit broader markets.

Trouble Ahead for Ford

Ford is facing challenges on all sides. Higher costs from tariffs. Lower earnings. A shaky economy. And worried investors.

If you’re watching the S&P 500 or Dow Jones, Ford is one of the stocks to keep an eye on. What happens to Ford could be a sign of what’s coming next for the broader market.