Ford Motor Company has suspended shipments of several U.S.-built vehicles to China in response to retaliatory tariffs that have imposed taxes as high as 150% on vehicles, according WSJ. This includes halting exports of popular models like the F-150 Raptor, Mustang, Bronco SUV, and Lincoln Navigator.
The decision comes as U.S. automakers grapple with the impact of President Donald Trump’s tariff policies, which are expected to dent profits for carmakers and parts suppliers alike. Despite these export cuts, Ford will continue to ship U.S.-built engines and transmissions to China, and the Lincoln Nautilus—manufactured in China—will also continue distribution.
Ford is relatively insulated from the tariffs due to its strong domestic production base, with approximately 80% of its U.S.-sold vehicles manufactured in the country. However, the company may still raise vehicle prices if the tariffs persist. A recent analysis indicates that a 25% tariff on automotive imports might increase costs for automakers by $108 billion in 2025.
President Trump has hinted at possible revisions or exemptions to existing auto-related tariffs, but no concrete changes have been announced. The ongoing trade tensions continue to pose challenges for the automotive industry and global trade dynamics.
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