The tariff wars between the United States and the rest of the world have had devastating effects on the consumer market – this time, the automotive industry is affected as well.
Recently, the automotive company Ford announced its decision to halt the shipment of SUVs and sports cars from going to China as retaliatory tariffs have caused taxes to rise to as high as 150%.
In a statement obtained by news publication Reuters, Ford said: “We have adjusted exports from the U.S. to China in light of the current tariffs”.
The vehicles said to have been exported include the F-150 Raptors, Mustangs, and Michigan-built Bronco SUVs, as well as Kentucky-made Lincoln Navigators to China.
The above-mentioned publication notes that the company is seeking alternative ways to work around President Donald Trump’s on-again and off-again tariffs, which are said to have bitter consequences on the businesses of both car makers as well as parts suppliers.
Meanwhile, Ford will now continue to export the built engines and transmissions from the United States to China despite the current halt that has been placed on the assembled vehicles.
In another statement seen by Reuters, it has now been reported that Ford will consider increasing the price of its vehicles, should the tariffs continue.
Earlier this month BBC News reported that the reason for the tariffs is that Trump believes tariffs will encourage US consumers to buy more American-made goods. This might then increase the amount of tax raised and lead to huge levels of investment in the country.
