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Trump Follows Through On China Tariffs, Impacting Ford

Last year, then-President Joe Biden announced a series of tariffs for goods imported from China into the U.S., including steel, aluminum, semiconductor chips, raw materials used in the construction of EV batteries, and automobiles, with levies as high as 100 percent. Shortly after replacing Biden in the White House, President Donald Trump announced that he intended to place tariffs of 25 percent on goods imported from Mexico and Canada, as well as an additional 10 percent on China. Now, those China tariffs have officially taken effect, which could impact Ford in a number of ways.

A photo showing the exterior of the 2024 Lincoln Nautilus from a front three quarters angle.

According to the Associated Press, the new Chinese tariffs have indeed taken effect, and China also plans to implement its own round of retaliatory tariffs on February 10th as well, ranging from 10-15 percent on certain U.S. goods including coal, oil, natural gas, large-engine cars, and agricultural machinery. Regardless, Trump plans on speaking with Chinese President Xi Jinping in the coming days as the two sides aim to hammer out a deal.

Aside from various parts, Ford currently builds the Lincoln Nautilus in China and imports it into the U.S., so it’s possible that these tariffs could impact the price of that luxurious crossover, at least, if no deal is reached between the two countries in the coming days that lifts those tariffs. Additionally, Ford builds a few vehicles in the U.S. and exports them to China, such as the Ford F-150 and Lincoln Navigator, which could also be impacted. On the flip side, the Nautilus is also facing a new rule in the U.S. that prohibits the import of VCS connected vehicles equipped with hardware of software with a “sufficient nexus” to China or Russia in the coming years.

A rear three quarters view of the 2024 Lincoln Nautilus.

Meanwhile, Trump opted to push back the implementation of new tariffs on Canada and Mexico by at least 30 days after speaking with the presidents of both countries, and both of those countries have done the same in regard to retaliatory tariffs. In Mexico, officials will send 10,000 troops to the border to help combat drug trafficking, while Canada outlined additional border protection measures of its own just a few hours later.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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Comments

  1. I don’t recall hearing about a retaliation from China on the Biden tariffs? Was the Trump extra 10% just a step too far?

    Reply
  2. Good. Put 100% tariff on Chinese vehicles.

    Reply
  3. Whose idea at Ford was it to import vehicles from China anyways?…
    I mean, I’m not an economist, but I can at least see that this was going to be a problem down the road… which it now is!!

    Reply

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