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According to Carscoops, Ford has just announced a halt to vehicle shipments, including its iconic trucks, to China as the American automaker grapples with retaliatory tariffs imposed by the country.
This move by Ford will impact a range of imported models in the Chinese market, including the Ford F-150 Raptor, Ford Bronco, Ford Mustang, and Lincoln Navigator. It is the latest fallout from the ongoing trade war between the US and China, affecting automakers on both sides.
China recently announced a tariff increase of 150% on US-made vehicles, a move seen as a retaliation to the tariffs imposed by the Trump administration on various Chinese goods.
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While Ford sold approximately 400,000 vehicles in China last year, only 5,500 of those were directly imported from the US. Despite being a small fraction, these imported Ford vehicles contributed to profits and played a role in the company’s brand image strategy in China. Imported trucks like the F-150 Raptor are sold to Chinese customers for prices equivalent to over 100,000 USD.
Even though Ford has ceased exporting complete vehicles, the company will continue to send engines and transmissions manufactured in the US to China. Ford will also continue to import the Lincoln Nautilus from its Chinese plant, despite the current tariff barriers.
Back home, Ford is reportedly considering price increases if the tariff war persists. About 80% of the vehicles Ford sells to American customers are domestically produced, which helps the company avoid the 25% tariff on imported vehicles. However, the company will still be impacted by similar tariffs on foreign-sourced parts, expected to take effect in early May.
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Carscoops cites Automotive Research, suggesting that the 25% tariffs imposed by the Trump administration could cost automakers operating in the US market an additional 108 billion USD this year. However, the 47th US President has also hinted at possible exemptions to the new tariff policy, likely aimed at supporting the American automotive industry.
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