Ford Halts US Vehicle Exports to China Due to Tariff War Consequences | Carscoops

      Ford has ceased exports of certain vehicle models to China, including the F-150 pickup, due to retaliatory tariffs imposed by China. This marks the first action taken by Ford in light of the increasing tariffs.

      However, exports of American-made engines and transmissions to China will remain ongoing.

      The company has announced a suspension of shipments of cars and trucks to China as it confronts the tariffs affecting American-made vehicles. This halt will affect various models including the Ford F-150 Raptor, Bronco, Mustang, and Lincoln Navigator.

      This decision is the latest outcome of the ongoing trade conflict between the US and China, which has left automakers on both sides affected. In response to tariffs from the Trump Administration on numerous Chinese goods, China raised tariffs on US-made vehicles as high as 150 percent.

      According to The Wall Street Journal, last year Ford sold approximately 400,000 vehicles in China, with only 5,500 of those coming from the US in 2024. Although this accounts for a small portion of Ford’s sales in China, it is a profitable segment, with renowned models like the imported F-150 Raptor selling for over $100,000 in the Chinese market.

      Despite the halt on exporting assembled vehicles, Ford will continue to supply US-built engines and transmissions to China. The Lincoln Nautilus is an example of a vehicle that Ford imports from China, and despite facing significant tariffs, shipments are still ongoing.

      In the US, Ford intends to increase prices on new vehicles if the tariff conflict persists, as stated in an internal memo. This is notable even though about 80 percent of the models sold in the US are produced domestically. While this strategy may help avoid the 25% tariffs on imported cars, it will not protect the company from tariffs on overseas-produced parts used in their vehicles.

      A recent analysis by the Center for Automotive Research indicated that the 25% tariffs on automotive imports initiated by Trump will lead to an estimated $108 billion increase in costs for automakers in 2025. The fluctuating tariffs have forced automakers to reevaluate their strategies, though President Trump suggested earlier this week that he may consider exemptions to the new tariffs.