China's Record Trade Surplus With US Adds Fuel to Trade War Fire
11 September, 2018, 07:55 | Author: Eric Barnett
Ford won't be moving production of a hatchback wagon to the United States from China, despite President Donald Trump's claim Sunday, Sept. 9, 2018 that his taxes on Chinese imports mean the Focus Active can be built in America.
The Ford Focus Active, a small crossover auto now sold in Europe, was slated to begin production in China for the US market.
"Because all tariffs ultimately show up as a tax on US consumers, they will increase the cost of Apple products that our customers have come to rely on in their daily lives", said the company.
The Focus Active was set to be the first Chinese-made Ford offered in the US, while General Motors now imports the Buick Envision SUV and Cadillac CT6 Plug-In Hybrid. That is why companies like Ford cannot sell their vehicles, which they make overseas, in the U.S.
"We hope, instead, that you will reconsider these measures and work to find other, more effective solutions that leave the USA economy and USA consumer stronger and healthier than ever before". That would extend tariff increases to almost all of China's exports to the United States.
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It's not just money that's stopping Apple from building factories in the US
If Ford sold fewer than 50,000 Focus Active wagons per year, it would run a USA factory on only one shift per day, which isn't cost-effective, Dziczek said.
"This is just the beginning". Start building new plants now. The profit margins were simply too small to be worth it. "This forces Ford to forfeit the sales they would have had if they could continue to import that low-volume niche vehicle". "We hope, instead, that you will reconsider these measures and work to find other, more effective solutions that leave the USA economy and USA consumer stronger and healthier than ever before".
For the Focus Active, the tariffs on Chinese vehicles changed everything.
The tariffs are top of mind for Apple chief executive Tim Cook, who has personally lobbied Trump for months on issues of taxes and trade, even dining with the president and first lady Melania Trump at Trump National Golf Course in Bedminster, New Jersey, last month. The threat is to impose tariffs on every product imported in the U.S from China, but for now, the next in line plan is to impose tariffs of up to 25 percent on $200 billion of Chinese imports. China is retaliating with its own tariffs on United States products.
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Ford rules out building Focus Active in US
Trump's increasing aggression toward China and his strong desires for increases in tariffs have many companies anxious . Earlier this year Ford cancelled all its smaller cars with the exception of the Mustang and the Focus Active.
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