Lincoln Navigator Will Be Impacted By Retaliatory Chinese Tariffs

U.S. President Donald Trump’s decision to impose new tariffs on imports into the country have thus far also been joined by retaliatory tariffs, which are intended to level the proverbial trading field based on what levies other countries place on U.S. imports. These retaliatory tariffs will likely impact a wide variety of goods imported into places like China, a country that has responded by placing higher tariffs of its own on those items – meaning that the Lincoln Navigator will be impacted, specifically.

According to Automotive News, China’s 34 percent retaliatory tariffs placed on imported U.S. goods – slated to start tomorrow – 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.

Currently, the Lincoln Navigator is the only model from that luxury brand that’s exported to China, as the rest of its lineup is built locally in the country for consumers there. 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.

In the meantime, Ford has resigned to the fact that it will be forced to pay tariffs on imported vehicles that it builds elsewhere and sells in the U.S., as well as major components, but it’s lobbying the Trump administration to exclude lower-cost parts built in other countries using cheap labor. It’s unclear if Ford will raise prices to compensate, though it stands to be impacted by increased costs, regardless – causing more than one investment firm to downgrade its stock target price.