US-based Ford Motor has ceased the exports of several vehicle models to China in response to the retaliatory trade tariffs imposed by China, which have reached 150%, reported the Wall Street Journal.
The suspension affects exports of the F-150 Raptor pickup truck, Mustang sports car, Bronco SUV, and Lincoln Navigator, which are manufactured in Michigan and Kentucky.
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The latest move comes after China implemented countermeasures to US import taxes, pushing tariffs on these vehicles as high as 150%.
A Ford spokesperson was cited by the newspaper as saying: “We have adjusted exports from the US to China in light of the current tariffs.”
Last year, Ford exported approximately 5,500 units of the affected models to the Chinese market, a decline from an average of over 20,000 units annually in previous years.
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By GlobalDataDespite the halt in vehicle exports, Ford continues to ship US-built engines and transmissions to China.
The company is also maintaining imports of the Lincoln Nautilus from China to the US.
Ford and other manufacturers have also seen declining sales in China, partly due to the growing dominance of domestic Chinese car brands.
Ford’s sales in China dropped to around 400,000 vehicles last year, compared to approximately 1.3 million in 2016.
Ford vice-chairman John Lawler was cited by the news agency as saying that the company’s operations in China generated an operating profit of about $900m last year.
The company expects to increase the prices of its new vehicles if the tariffs remain in place, as suggested by an internal memo sent to dealers and seen by Reuters.
Earlier this week, Trump hinted at the possibility of modifying the auto-related tariffs, suggesting that exemptions on current levies might be considered.
Last month, Ford unveiled plans to invest up to €4.4bn ($4.8bn) into its German subsidiary, Ford-Werke, to revitalise and increase the competitiveness of its business.
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