Ford suspends US vehicle exports to China amid escalating tariff tensions

Ford Motor Company has suspended shipments of several high-end US-manufactured vehicles to China in response to sharply increased tariffs imposed amid intensifying trade tensions between Washington and Beijing, sources familiar with the matter stated.

The move, which took effect this week, halts the export of some of Ford’s most recognizable and lucrative models — including the F-150 Raptor, Mustang muscle cars, Bronco SUVs produced in Michigan, and the Lincoln Navigator, assembled in Kentucky, Caliber.Az reports citing foreign media.

These vehicles, long favored by affluent Chinese consumers, are now subject to import duties as high as 150 per cent following China's latest retaliatory tariffs.

“We have adjusted exports from the US to China in light of the current tariffs,” a Ford spokesperson confirmed, although the company did not specify the particular models or provide a timeline for the suspension.

The F-150 Raptor, which commands prices nearing $100,000 in the Chinese market, and other American-made Ford models have historically served as prestige symbols and brand ambassadors in China. While the scale of this export business is relatively modest — with just 5,500 units shipped last year — it remains a profitable segment, enhancing the company’s brand visibility among Chinese consumers.

Ford began exporting these models nearly a decade ago and, until recently, had averaged more than 20,000 vehicle exports to China annually. Despite the current pause in assembled vehicle shipments, the company is continuing to export engines and transmissions manufactured in the US, insiders revealed.

Conversely, Ford continues to import the Lincoln Nautilus from China into the US, even though that model is now also subject to steep import taxes. The spokesperson noted these shipments are ongoing.

The decision comes amid broader turmoil in the global automotive sector caused by the Trump administration's fluctuating trade policies. Recent months have seen the imposition of a 25 per cent tariff on imported vehicles and auto parts, in addition to levies on steel, aluminum, and various Chinese goods — all of which have raised alarms about profitability among automakers and suppliers.

Ford’s market share in China has diminished considerably in recent years. The company sold approximately 400,000 vehicles in the country last year — including those produced through joint ventures — down dramatically from a peak of around 1.3 million units in 2016. Industry analysts cite the rise of domestic Chinese brands and ongoing trade uncertainties as key contributors to the decline.

Nonetheless, Ford has pivoted to use its Chinese production facilities as an export base, supplying markets across Southeast Asia and South America. Ford Vice Chairman John Lawler recently disclosed at an investor conference that the company’s China operations generated an operating profit of approximately $900 million in the previous fiscal year.

By Vafa Guliyeva