Ford Halts Auto Shipments To China As Tariffs Disrupt Market
The tariffs in question have raised import taxes on certain vehicles to as much as 150 per cent, creating a challenging environment for American carmakers.
In a move triggered by escalating trade tensions, Ford Motor has halted shipments of several US-manufactured vehicles to China, citing the impact of high retaliatory tariffs. The automaker confirmed the suspension in a statement, and noted, "We have adjusted exports from the US to China in light of the current tariffs.
The tariffs in question have raised import taxes on certain vehicles to as much as 150 per cent, creating a challenging environment for American carmakers, reported Reuters.
The affected models include the popular F-150 Raptor, the Mustang, and the Michigan-assembled Bronco SUVs. Shipments of the Lincoln Navigator, built in Kentucky, have also been paused. The decision marked a significant shift for Ford, which is known for exporting a range of high-demand vehicles to China, one of the world's largest automotive markets.
Exports Continue For Select Components And China-Built Models
Despite the halt on fully assembled vehicle shipments, Ford’s exports of engines and transmissions from the US to China are expected to proceed without disruption. Additionally, the Lincoln Nautilus—manufactured within China—will continue to be shipped as usual, even as steep tariffs remain in place, the report noted.
The Wall Street Journal first reported the development, citing unnamed sources familiar with the matter. The halt comes as US automakers assess the ongoing uncertainty surrounding President Donald Trump's fluctuating stance on trade tariffs. An internal memo seen by Reuters suggested that if the tariffs persist, Ford may raise prices on its new vehicles sold domestically.
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Tariffs Set To Squeeze Automakers’ Bottom Lines
Ford, which builds approximately 80 per cent of its US market vehicles domestically, may be better positioned than some competitors to handle the fallout. However, the wider industry impact could be severe. A recent study by the Center for Automotive Research estimated that the administration's 25 per cent levy on auto imports could raise costs for automakers by around $108 billion in 2025.
Adding to the uncertainty, Trump hinted earlier in the week that he might consider easing some of the auto-related tariffs, possibly granting exemptions under certain conditions. For now, though, manufacturers like Ford are left navigating a volatile trade landscape that continues to evolve.
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