Ford in April made the shock announcement that by 2020 the only passenger cars in its lineup will be the Mustang and the Focus Active soft-roader based on the recently redesigned fourth-generation Focus.
On Sunday, President Donald Trump tweeted approvingly about the 10-day-old news that his 25% tariffs on Chinese-made automobiles had led Ford (f) to decide against importing its compact Ford Focus Active model to the us from the Chinese factories where the vehicle is made.
Trump took to Twitter Sunday to declare victory and write: "This is just the beginning".
China on Monday promised retaliation if US President Donald Trump escalates their tariff battle, raising the risk Beijing might target operations of American companies as it runs out of imports for penalties. While Apple's components and manufacturing processes would be free from tariffs, production costs would increase due to significantly higher labor costs in the States.
"Ford is proud to employ more USA hourly workers and build more vehicles in the US than any other automaker". It makes many of its products for the U.S. market in China, and it also sells gadgets including the iPhone in China, making them a potential target for Chinese retaliation against the Trump tariffs.
The technology sector is one of the biggest potential losers in the $200 billion tariff list proposed by Washington on Chinese imports because the tariffs would make imported computer parts more expensive. The company is making iPhone display glass in Kentucky, and is setting up new plants in other areas.
Tension has also persisted over limits on USA firms' access to Chinese markets, intellectual property protection, technology transfers and investment. Yesterday, as the Inquisitr reported, Trump told Apple that it should make their products in the United States, and therefore bypass his tariffs.
Ford spokesman Michael Levine said the Focus Active is built in Europe. But it is running out of room to match them dollar-for-dollar, raising concern it would resort to other measures, such as weakening the yuan or taking action against US companies in China.
The tariffs changed everything. China is retaliating with its own tariffs on US products.
The world's two biggest economies are clashing over US allegations that China deploys predatory tactics - including outright cybertheft - to acquire technology from USA companies and challenge American technological dominance.