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President Trump waded into the global auto industry again in his ongoing trade war over the weekend, tweeting on Sunday about
‘s decision
not to import its Focus Active from China
because of import tariffs and proclaiming, “This car can now be BUILT IN THE U.S.A.” where the company would pay no tariffs.
abruptly issued a statement saying essentially, yeah, not so much.
“Ford has abruptly killed a plan to sell a Chinese-made small vehicle in the U.S. because of the prospect of higher U.S. Tariffs.” CNBC. This is just the beginning. This car can now be BUILT IN THE U.S.A. and Ford will pay no tariffs!
— Donald J. Trump (@realDonaldTrump) September 9, 2018
Trump’s tweet appears to have been a response to a report about the Focus Active on
CNBC
, and it elicited the following response from the Blue Oval:
“It would not be profitable to build the Focus Active in the U.S. given an expected annual sales volume of fewer than 50,000 units and its competitive segment. Ford is proud to employ more U.S. hourly workers and build more vehicles in the U.S. than any other automaker.”
Ford last month said it was
scrapping plans to import the Focus Active crossover
from China because of the steep 25 percent tariffs Trump has imposed on China, where the vehicle is built, would make it impossible for Ford to hit its profit targets. The car had been set to replace the
in the U.S., with the Focus Active
going on sale in the second half of 2019
. Now, the change in plans leaves the
as the lone passenger car with a long-range future in Ford’s domestic lineup as the company doubles down on trucks, SUVs and
.
As
The New York Times notes
, it was the second such tweet in as many days, after Trump on Saturday called on Apple to begin making iPhones in the U.S. if it wanted to avoid import tariffs. Easy, right?
Apple prices may increase because of the massive Tariffs we may be imposing on China – but there is an easy solution where there would be ZERO tax, and indeed a tax incentive. Make your products in the United States instead of China. Start building new plants now. Exciting! #MAGA
— Donald J. Trump (@realDonaldTrump) September 8, 2018
“This is further evidence that neither the president nor his trade representatives have any clue of the complexities of global supply chains,” Jon Gabrielsen, a market economist who advises automakers and suppliers,
.
If the U.S. sells a car into China, there is a tax of 25%. If China sells a car into the U.S., there is a tax of 2%. Does anybody think that is FAIR? The days of the U.S. being ripped-off by other nations is OVER!
— Donald J. Trump (@realDonaldTrump) September 9, 2018
Trump followed his tweet about the Focus Active with another outlining his rationale for waging a trade war against China. But as the
Free Press
notes, it was full of inaccuracies. China lowered its 25-percent tariff to 15 percent for World Trade Organization members like the U.S. but raised it to 40 percent after Trump enacted his 25 percent tariffs. The U.S. also charged 2.5 percent, not 2 percent, prior to the new tariffs on China-made goods, meaning imports from that country now face a 27.5-percent tariff.
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