Ford says it won’t be moving production of a hatchback vehicle to the United States from China — despite President Donald Trump’s claim that his taxes on Chinese imports mean the Focus Active can be built in America.
Citing Trump’s new tariffs, Ford on Aug. 31 said it was dropping plans to ship the Focus Active from China to America.
Trump took to Twitter Sunday to declare victory and write: “This is just the beginning. This car can now be BUILT IN THE U.S.A. and Ford will pay no tariffs!”
Trump was referring to a Reuters article published last week on CNBC that said Ford cancelled plans to sell a small, Chinese made vehicle because of possible hikes in tariffs. In the article, a Ford official said it would have been a “niche vehicle” in US markets, and will not cost jobs or hurt sales.
In a Sunday statement replying to the tweet, Ford said “it would not be profitable to build the Focus Active in the U.S.” given forecast yearly sales below 50,000.
For now, that means Ford simply won’t sell the vehicle in the United States.
Trump first threatened to up tariffs against China in July, boosting the looming trade war between the US and China. After months of discussion among US companies that the tariffs would cause costs of a wide variety of huge range of industrial and consumer goods.
Trump told reporters Friday that the tariffs would “take place very soon.”