Ford has paused shipments of its SUVs, pick-up trucks, and sports cars to China as it faces growing challenges from retaliatory tariffs.
With rates as high as 150%, these tariffs are creating major hurdles for American automakers in the Chinese market.
In a statement on Friday, Ford acknowledged the impact of the current trade environment, “We have adjusted exports from the U.S. to China in light of the current tariffs.”
Ford has paused shipments of popular U.S.-assembled models, including the F-150 Raptor, Mustang, Michigan-made Bronco SUVs, and Kentucky-produced Lincoln Navigators. However, the company will continue exporting U.S.-built engines and transmissions to China.
The Lincoln Nautilus, manufactured in China, remains unaffected by the export halt, although it still faces heavy tariffs.
The halt underscores the broader challenges U.S. automakers face due to the ongoing uncertainty surrounding tariffs introduced during former President Donald Trump’s administration.
These shifting trade policies have created significant pressure on carmakers and parts suppliers, resulting in increased costs and operational disruptions that could hurt profits.
A report from the Centre for Automotive Research estimates that the 25% tariffs on U.S. automotive imports will increase costs for automakers by around $108 billion by the end of 2025.
The analysis highlighted the considerable financial strain these policies place on both manufacturers and consumers, who could face higher vehicle prices.
An internal Ford memo, obtained by Reuters, shows that the company is considering raising the prices of its new vehicles due to ongoing tariff challenges.
Although Ford is in a relatively strong position, producing nearly 80% of its U.S.-sold vehicles domestically, the added costs from tariffs may require price adjustments to sustain profitability.
The ongoing uncertainty around trade policies further complicates the challenges facing the industry.
