FORD Motor has scrapped plans to import its small Ford Focus Active car to the US from China because US tariffs could kill its profit margin.
Ford will still sell the Focus Active in Europe and China, reports Bloomberg.
In retaliating against the initial Trump tariffs, Beijing imposed 25 per cent tariffs on imports of cars from the US. That led BMW to announce a shift in some SUV production overseas from its South Carolina plant.
Meanwhile, Tesla (TSLA) aims to dodge tariffs by building a plant in Shanghai to serve the Chinese market. That could take several years though.
Ford's decision comes as President Donald Trump escalated the trade war, planning to exact tariffs on an additional US$200 billion worth of Chinese imports, including auto-related imports.
The move comes as Ford saw Moody's downgrade its credit rating to a notch above junk, requiring a focus on deploying resources in the most cost-effective way.
While roughly 95 per cent of Ford vehicles sold in the US are assembled in North America, Reuters reported Ford as saying that it will continue to import EcoSport sport-utility vehicles from India and the small Transit Connect vans from Spain.
General Motors (GM) has sought an exemption from Trump tariffs on its $32,000 Buick Envision compact SUV that is produced in China.
Ford will still sell the Focus Active in Europe and China, reports Bloomberg.
In retaliating against the initial Trump tariffs, Beijing imposed 25 per cent tariffs on imports of cars from the US. That led BMW to announce a shift in some SUV production overseas from its South Carolina plant.
Meanwhile, Tesla (TSLA) aims to dodge tariffs by building a plant in Shanghai to serve the Chinese market. That could take several years though.
Ford's decision comes as President Donald Trump escalated the trade war, planning to exact tariffs on an additional US$200 billion worth of Chinese imports, including auto-related imports.
The move comes as Ford saw Moody's downgrade its credit rating to a notch above junk, requiring a focus on deploying resources in the most cost-effective way.
While roughly 95 per cent of Ford vehicles sold in the US are assembled in North America, Reuters reported Ford as saying that it will continue to import EcoSport sport-utility vehicles from India and the small Transit Connect vans from Spain.
General Motors (GM) has sought an exemption from Trump tariffs on its $32,000 Buick Envision compact SUV that is produced in China.