Ford Motor Company announced a suspension of transportation of several vehicle models to China, citing increasing challenges posed by trade tensions and retaliatory tariffs. The decision will affect popular vehicles made in the U.S., including the F-150 Raptor, Mustang, Michigan-assembled Bronco SUV and Kentucky-made Lincoln Navigator.
The automaker explained in a statement released Friday that it has “adjusted exports from the U.S. to China” in light of current tariffs, at levels up to 150% on certain U.S.-made vehicles. The steep responsibility poses a major obstacle to the U.S. automakers seeking a foothold in the Chinese market.
Ford confirmed that it will continue to export engines and transmissions to the United States. However, it noted that Lincoln Nautilus, produced locally in China, will not be affected by export pauses, but will still bear a heavy tariff burden.
Industry analysts say the volatile trading environment is seriously affecting automakers and parts suppliers. The Automotive Research Project Center, by the end of 2025, the 25% tariff on U.S. auto imports will increase industry costs by about $100.8 billion. Analysts warn that financial losses may not only be borne by manufacturers, but also by consumers through higher vehicle prices.
The internal Ford memo obtained by Reuters shows that the company is evaluating potential price increases on new vehicles to offset the long-term effects of tariffs. While nearly 80% of Ford’s vehicles sold in the U.S. are made domestically, the increased cost pressure may still prompt the company to adjust its pricing strategy to maintain profitability in the face of trade uncertainty.
