Ford halts vehicle shipments to China amid escalating tariff conflict

Ford Motor Company has announced a halt in shipments of several vehicle models to China, citing the increasing difficulties brought about by rising trade tensions and retaliatory tariffs.

This move impacts well-known American vehicles such as the F-150 Raptor, Mustang, Michigan-built Bronco SUVs, and Kentucky-made Lincoln Navigators.

In a statement issued on Friday, the automaker explained that it has “adjusted exports from the U.S. to China” in response to current tariffs, which on some U.S.-made vehicles have reached as high as 150 percent. These hefty duties have posed considerable obstacles for American automakers trying to maintain a presence in China’s market.

Ford also confirmed that it will continue shipping engines and transmissions produced in the U.S. to China. The company pointed out that the local production of the Lincoln Nautilus in China will not be affected by the export halt, though it will still face the impact of significant tariffs.

Industry experts warn that the unpredictable trade landscape is significantly affecting both carmakers and parts providers. According to the Center for Automotive Research, the 25 percent tariffs on U.S. auto imports are expected to boost industry expenses by roughly $108 billion by the close of 2025. Analysts caution that this financial burden will likely be passed down not just to manufacturers but also to consumers through increased vehicle prices.

A confidential Ford memo, leaked to Reuters, suggests that the company is reconsidering the possibility of raising prices on new vehicles to mitigate the long-term effects of tariffs. Although nearly 80 percent of Ford’s U.S. vehicle sales are domestically produced, the mounting cost pressures could lead the automaker to modify its pricing approaches to maintain profitability amid trade uncertainties.