Since the Trump administration launched its inconsistent and impactful tariff policy, corporations have been scrambling to limit the damage. Ford has been grappling with the new tariffs on imported goods and is seemingly trying to get some relief from Washington. However, retaliatory tariffs have also caused problems for the automaker, and according to a recent report, it has taken major action to limit the fallout from the federal government’s spat with China.
As detailed by the Wall Street Journal, Ford decided to stop exporting vehicles to China due to the 150 percent retaliatory tariffs the country enacted in response to Trump’s tariff regime. The decision impacts the Ford F-150 Raptor, Ford Mustang, Ford Bronco, and Lincoln Navigator. An earlier comment from Lincoln indicated the company had decided to keep exporting the luxury SUV, but it seems the automaker found the cost too great to bear. “We have adjusted exports from the U.S. to China in light of the current tariffs,” a Ford spokeswoman told the publication.
Ford started exporting the aforementioned vehicles to China about 10 years ago, and the effort has been profitable since its inception. Ford has struggled for relevancy in China as of late, although the automaker’s pivot the using the country as an export hub has paid off to the tune of about $900 million. While the Bronco is no longer being exported to China, Ford recently started producing the SUV within the country along with other related vehicles like the Ford Ranger. That’s probably why the company isn’t halting shipments of American-made engines and transmissions to China.
At this juncture, Ford has made peace with the fact that it may have to deal with major tariffs on its vehicle lineup and major parts, but wants tariffs on smaller components reduced or rescinded. But it may still have to raise prices for Americans in June if nothing changes, despite recently launching its employee pricing campaign. The Blue Oval may also have to deal with retaliatory Canadian tariffs, but the situation is still very much fluid.
Comments
Who needs Chinese poorly made products ? They make Junk !
Like your cellphone and many other items in your home?
Actually, my cellphone, a Pixel 9A, is made in Vietnam. The same with my previous Galaxy S22. If you don’t think companies are starting to consider the security of their businesses and leaving China for friendlier countries, think again. Its very much happening. Slowly, but it surely is.