Lincoln Navigator Exports To China Will Continue Despite Tariffs

As Ford Authority reported last week, the Lincoln Navigator will be impacted by retaliatory tariffs imposed by China on goods coming from the U.S., as it’s currently the only model in the luxury brand’s lineup that isn’t produced in that country for the local market. Ford China no longer releases official sales figures, so it’s unclear how much of an impact this will have on the automaker, but automotive exports in general have been on the decline to that country for several years now amid tight competition. Regardless, given that it’s sold in small quantities there, perhaps it should come as no surprise to learn that Lincoln Navigator exports will continue, in spite of the new tariffs.

Lincoln President Dianne Craig recently confirmed to Automotive News that the brand will continue to ship the Lincoln Navigator to China, which it sells there in “relatively low volumes.” “At this point, we haven’t made any adjustments but it won’t have any big impact right now on our Lincoln China business,” Craig noted.

China’s 34 percent retaliatory tariffs placed on imported U.S. goods will add to existing levies of 15 percent on all U.S. auto imports, as well as another 10 percent depending on the size of the engine present in those models. This means that vehicles imported with engines that are 2.5L or smaller will now be subject to 49 percent tariffs, while those with larger engines – including the Lincoln Navigator – will be slapped with 59 percent levies.

On the flip side, the Lincoln Nautilus – which is built in China and exported to the U.S. – also stands to be impacted by a 125 percent tariff in the U.S. Craig confirmed that the luxury brand isn’t altering its plans for that model either, though it may very well become more expensive in the near future as a result. “At some point, yes, it might be likely that we’re going to have to take some level of pricing, but we also know we have to understand what happens with the competitive environment, we have to understand how much can consumers actually absorb, how much can we pass along, and it really comes down to where the tariff lands,” she said. “It remains to be seen. The question will be how much and when?”