Ford Motor Company says it is pausing shipments of its SUVS, pick-up trucks and sports cars to China due to increasing challenges from the trade war and retaliatory tariffs.
The tariffs, imposed on US-manufactured vehicles, have reportedly escalated to rates as high as 150%, creating significant barriers for American automakers operating in the Chinese market.
Ford, in a statement released on Friday, acknowledged the impact of the current trade environment
“We have adjusted exports from the US to China in light of the current tariffs,” it said
The auto company, as part of these adjustments, has paused shipments of popular models, including the F-150 Raptor, Mustang, Michigan-assembled Bronco SUVS, and Kentucky-produced Lincoln Navigators.
Despite this suspension, Ford will continue exporting US-built engines and transmissions to China.
In addition, the Lincoln Nautilus, a model manufactured domestically within China, will remain unaffected by the export halt, although it continues to face heavy tariff impositions.
These “on-again, off-again”; trade policies have placed enormous pressure on carmakers and parts suppliers alike, with heightened costs and operational disruptions expected to eat into profits.
A report from the Centre for Automotive Research, revealed that the 25% tariffs imposed on US automotive imports are projected to escalate costs for automakers by approximately $108 billion by the end of 2025.
According to an internal Ford memo, the company is considering increasing the prices of its new vehicles in response to prolonged tariff challenges.
While Ford is well-positioned compared to some competitors, producing nearly 80% of its U.S.-sold vehicles domestically, the additional costs from tariffs could necessitate price adjustments to maintain profitability.
