Ford Motor Company has suspended shipments of several U.S.-built vehicles to China in response to a sharp escalation in trade tensions and rising import taxes that have reached as high as 150% on certain American-made cars.
According to a company statement released Friday, Ford has adjusted its export strategy to China amid the current tariff climate. Shipments of high-profile models such as the F-150 Raptor, Mustang, Bronco SUV, and Lincoln Navigator have been paused, all of which are assembled in Michigan and Kentucky.
The move comes as U.S. automakers broadly reevaluate their international strategies in the wake of President Donald Trump’s renewed tariff campaign, which has disrupted trade flows and sent automakers scrambling to mitigate potential losses. The shift marks the latest corporate fallout from the intensifying U.S.-China trade conflict.
Strategic Retrenchment
While Ford is temporarily halting vehicle shipments, the company noted that exports of U.S.-manufactured engines and transmissions will continue, as will production of the Lincoln Nautilus, which is assembled in China and thus not subject to the steepest retaliatory tariffs.
Ford emphasized its relative insulation from the most severe tariff impacts, as around 80% of the vehicles it sells in the U.S. are built domestically. However, the company warned in an internal memo to dealers, seen by Reuters, that vehicle prices could rise if tariffs remain in place over the long term.
Industry-Wide Impact
The entire U.S. automotive industry faces mounting pressure. A recent analysis by the Center for Automotive Researchestimates that Trump’s 25% tariffs on vehicle and parts imports could add $108 billion in costs to automakers in 2025 alone. This would likely lead to price hikes for consumers, reduced margins for manufacturers, and potential cutbacks in production or staffing across the supply chain.
President Trump has recently suggested he may revisit the current automotive tariffs, signaling potential exemptions or modifications to provide relief to U.S. carmakers. However, no formal changes have been announced.
Despite some level of resilience, Ford’s suspension of key exports signals the broader challenges faced by automakers attempting to navigate a volatile and politically charged global trade environment.
