Despite Trump's Suggestion, Ford Won't Produce This Vehicle In The US

Despite Trump's Suggestion, Ford Won't Produce This Vehicle In The US

Despite Trump's Suggestion, Ford Won't Produce This Vehicle In The US

On August 31, Ford announced it was canceling plans to ship the Focus Active to the US from China - citing new tariffs on Chinese imports.

President Donald Trump insists his trade war with China will spur more manufacturing jobs in the U.S. Two of the companies he's targeted - Apple Inc. and Ford Motor Co. - disagree.

Despite a claim to the contrary by President Trump, Ford says it has no plans to build its compact Focus Active model in the United States.

"Ford has abruptly killed a plan to sell a Chinese-made small vehicle in the USA because of the prospect of higher US tariffs.' CNBC".

Ford has already announced it will eventually stop selling all passenger cars in the US except the Mustang, in favor of meeting Americans' appetite for large - and profitable - trucks and SUVs. Of course, that was a response to the Trump administration raising the tariff on Chinese-built imports from 2.5 percent (not 2) to 27.5 percent.

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Whirlpool Corp said proposed tariffs on components from China would increase costs and create supply chain problem for USA manufacturers, putting them at a competitive disadvantage.

Trump declared victory on Sunday, writing: "This is just the beginning".

"Without the tariffs, the business case was pretty solid for that model in the USA market", he said.

For now, that means Ford simply won't sell the vehicle in the United States.

For the Focus Active, the tariffs on Chinese vehicles changed everything.

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Trump, speaking on Friday aboard Air Force One, said the administration had tariffs planned for an additional $267 billion worth of Chinese goods.

Dell Technologies said the proposed tariffs will increase costs of vital parts and components for its USA services and manufacturing operations.

The business news network obtained a research note from Merrill Lynch issued Monday responding to a tweet from the president urging the tech giant make its "products in the United States instead of China".

The company had plans to begin making the vehicle in China in the latter half of 2019 and exporting them to the USA market.

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