Ford Reportedly Halts Vehicle Shipments To China Amid Rising Tariffs
Ford Motor Co. (NYSE:F) has reportedly stopped exporting certain high-end vehicles to China due to increased tariffs.
What Happened: The automaker has halted shipments of F-150 Raptors, Mustang muscle cars, and Bronco SUVs from Michigan, as well as Lincoln Navigators from Kentucky, according to a report by the Wall Street Journal.
This follows China’s retaliatory tariffs on U.S. imports, which have soared to as high as 150%.
A Ford spokesperson commented, “We have adjusted exports from the U.S. to China in light of the current tariffs,” but did not specify which models or provide a timeline.
Although Ford’s export business to China is relatively small, it remains profitable, with the company exporting its iconic models to China for nearly a decade.
Last year, Ford exported about 5,500 vehicles to China, a significant decrease from the annual average of over 20,000.
Despite halting vehicle exports, Ford continues to ship U.S.-built engines and transmissions to China.
Ford’s sales in China have been declining, affected by the rise of local Chinese car brands. The company sold approximately 400,000 vehicles in China last year, a sharp drop from 1.3 million in 2016.
Why It Matters: The halt in Ford’s vehicle shipments to China is a direct consequence of the ongoing trade tensions between the United States and China.
Recently, President Donald Trump expressed reluctance to further escalate tariffs, indicating concerns over potential trade stagnation. He also hinted at China’s attempts to negotiate a deal, suggesting a possible resolution in the future.
In response to the U.S. tariffs, China has dismissed what it calls a “tariff numbers game” and filed a complaint with the World Trade Organization. The Chinese government has stated that talks can only proceed based on mutual respect.
Furthermore, some Chinese firms are reportedly using shell entities to circumvent the tariffs imposed by the Trump administration, potentially affecting U.S. revenue collection.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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