Ford rules out United States production of Focus Active

Lloyd Doyle
September 12, 2018

Citing Trump's new tariffs, Ford on August 31 said it was dropping plans to ship the Focus Active from China to America.

The US President said he would levy additional taxes on $267bn (£206.28bn) of goods over and above planned tariffs on $200bn (£154.52bn) of Chinese products.

According to industry analyst Ed Kim from AutoPacific, there was a strong chance the Focus Active would have been sold in the United States if it wasn't for the tariffs. Simply put, establishing a local production of the auto would not make a successful business case.

President Donald Trump tweeted Saturday that there's a simple solution: just make the products in the United States where there'd be zero tariffs.

With Ford joining Apple in criticizing President Trump's tariffs, the pressure on the administration to back down and de-escalate the trade war is perhaps greater than ever. Office Depot also said the tariffs would impact small- and medium-sized US companies.

President Donald Trumpand Apple are not seeing eye to eye. "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", Apple said.

In addressing Apple, Mr. Trump proposed what he called "an easy solution": "Make your products in the United States instead of China". Start building new plants now. Ford canceled those plans, citing tariffs imposed by the Trump administration.

In China, labor costs for motor vehicle and parts manufacturing are about $8 per hour including benefits, but it's more than $52 per hour in the US, according to Dziczek.

In August, China unveiled a proposed list of retaliatory tariffs on $60 billion of USA goods ranging from liquefied natural gas to some types of aircraft, should Washington activate the tariffs on its $200 billion list.

Trump does not recognise "the complexity of supply chains and the types of inputs that go into decisions of where to locate one's production of different vehicles", Cutler said.

Agilent also said it does not believe the goods it imports are specifically covered by the "Made in China 2025" industrial policy. Last month, it added tariffs to another $16bn in Chinese goods and is readying taxes on another $200bn.

Other reports by Iphone Fresh

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