Trump's move to slap China-built autos with an additional 25 per cent levy in July undermined the profitability of the Focus Active that Ford planned to start shipping into the US about a year from now, Kumar Galhotra, president of North America, said in a conference call with reporters.
Per Automotive News, Ford has decided it won't bring the Focus Active to the USA market even if the U.S. government removes the planned tariffs.
This tariffs would have reduced Ford's profits on the Focus Active, which would've been a niche product among Ford's planned portfolio of pickup trucks, SUVs and crossovers for 2019 and beyond.
"The impact to our future sales is expected to be marginal", Kumar Galhotra, Ford president of North America, said. This officially leaves just one passenger auto in Ford's U.S. lineup, the Mustang.
The company has said that almost 90 percent of the vehicles it sells by 2020 will be SUVs, trucks or commercial vehicles.
The Trump administration has so far slapped 25 percent tariffs on $50 billion in Chinese goods. The Active was among several vehicles designed for China and Europe, with the USA market a potentially convenient afterthought.
She said 48 percent of the vehicles sold in the USA were imported past year, and even vehicles that aren't imported have a significant percentage of foreign parts. If it doesn't receive that exemption, executives have warned that GM could drop that vehicle from its US lineup. Last month, Ford's stock dipped below US$10 for the first time since 2012. Last year, Ford chose to shift production to China, and this year the automaker made the move to eventually stop selling nearly all of its passenger cars in the U.S.