Ford stops shipping Michigan-built vehicles to China due to soaring tariffs
Ford stops shipping Michigan-built vehicles to China due to soaring tariffs
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In its trade war with Donald Trump, China has slapped on tariffs as high as 150% on imports.
The affected vehicles include the F-150 Raptor, Mustang, Bronco and Lincoln Navigator.
Ford continues to export the China-made Lincoln Nautilus to the U.S. and some engines and transmissions to China.
Ford Motor Co. has stopped shipping several expensive trucks and sports cars made in Michigan and Kentucky to China as tariffs have shot up as a result of the trade war between China and President Donald Trump.
The move was confirmed April 18 to the Detroit Free Press by two people familiar with the situation. The people, who asked to not be named because they are not authorized to share the information publicly, said the vehicles Ford has stopped shipping to China this week are: F-150 Raptor pickups, Mustang sports cars and Bronco SUVs built in Michigan, as well as Lincoln Navigators made in Kentucky.
Trump has set tariffs on China that now exceed 145%. In reaction, China has pushed tariffs on imported vehicles as high as 150%, sources said. Ford sells the F-150 Raptor for close to $100,000 in China, so it would be paying a hefty tax to bring it across the border.
Global automotive industry: Ford vice chair warns that advanced Chinese automakers threaten US industry
This news was first reported by the Wall Street Journal, but Ford spokeswoman Jess Enoch declined to comment on specific export changes. In an email to the Free Press, Enoch did say, 'We have adjusted exports from the U.S. to China in light of the current tariffs.'
Enoch told the Free Press that Ford continues to ship the Lincoln Nautilus, which is made in China, to the United States.
The sources also said that Ford is still shipping two engines it makes in Lima, Ohio, to China: One is its 2.7-liter engine and the other is the 3.0-liter engine used in vehicles made in China. The Dearborn-based automaker also continues to ship to China a 10-speed transmission made in Livonia and an 8-speed transmission it makes at Van Dyke Transmission in Sterling Heights.
Ford's exports to China, which started about a decade ago, compose a small but lucrative part of the business. Ford's China business made $900 million in earnings before interest and taxes last year, a figure that includes exported vehicles, John Lawler, Ford Motor Co.'s vice chair, said earlier this week.
According to the Journal, Ford last year shipped about 5,500 Broncos, F-150s, Mustangs and Navigators to China. That is below the annual average of more than 20,000 vehicle exports to China over the past decade.
Jamie L. LaReau is the senior autos writer who covers Ford Motor Co. for the Detroit Free Press. Contact Jamie at jlareau@freepress.com. Follow her on Twitter @jlareauan. To sign up for our autos newsletter. Become a subscriber.
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