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Ford Halts Vehicle Shipments to China Amid Escalating U.S. China Trade Tensions

  • Writer: 17GEN4
    17GEN4
  • Apr 19
  • 4 min read

DEARBORN, Mich. — Ford Motor Company, one of America’s automotive giants, has suspended shipments of several high-profile vehicle models to China, citing prohibitive tariffs that have surged as high as 150% amid intensifying trade disputes between the United States and China. The decision, announced on April 18, 2025, impacts iconic models such as the F-150 Raptor, Mustang, Bronco, and Lincoln Navigator, all manufactured in Michigan and Kentucky. This move underscores the broader economic fallout from the ongoing trade war and raises questions about the future of U.S. automakers in the world’s largest automotive market.


The suspension affects vehicles produced at Ford’s plants in Michigan, including the Michigan Assembly Plant in Wayne, where the Bronco and F-150 Raptor are built, and the Dearborn Truck Plant, which assembles the Mustang. The Lincoln Navigator, manufactured at the Kentucky Truck Plant in Louisville, is also included in the export halt. According to sources familiar with the matter, the decision was prompted by China’s retaliatory tariffs on U.S.-made vehicles, which have rendered these high-end models unaffordable for many Chinese consumers. For instance, the F-150 Raptor, which retails for nearly $100,000 in China, faces a tariff-induced price increase that significantly erodes its market competitiveness (Wall Street Journal, April 18, 2025).


“We have adjusted exports from the U.S. to China in light of the current tariffs,” Ford spokesperson Robyn Jackson said in a statement to the Detroit News. While Ford did not specify the affected models in its official release, industry insiders confirmed to multiple outlets, including the Detroit Free Press, that the suspension targets the F-150 Raptor, Mustang, Bronco, and Lincoln Navigator (Detroit Free Press, April 18, 2025; Detroit News, April 18, 2025).


The escalating trade tensions stem from a series of tariff hikes initiated under the administration of President Donald Trump. The U.S. has imposed duties on Chinese goods reaching 145%, including a 125% reciprocal tariff on certain auto imports, a 20% tariff tied to the fentanyl trade, and additional levies under Section 301 of the U.S. Trade Act. In response, China has raised tariffs on U.S. vehicle imports from 84% to 125%, with some models facing duties as high as 150% (Detroit News, April 18, 2025; Reuters, April 18, 2025). These measures have created a challenging environment for American automakers, particularly for high-margin, luxury vehicles like those affected by Ford’s decision.


Ford’s exports to China, which began roughly a decade ago, have historically been a small but lucrative segment of its business. Over the past ten years, the automaker has shipped approximately 240,000 vehicles to China, including the F-150 Raptor, Mustang, Bronco, and Lincoln Navigator. However, in 2024, export volumes plummeted to just 5,500 units, a sharp decline from the annual average of over 20,000 vehicles. This drop reflects both the rising tariffs and increasing competition from domestic Chinese automakers (madhyamamonline.com, April 19, 2025; Wall Street Journal, April 18, 2025). Despite the reduced export volumes, Ford’s China operations, including its joint ventures with local partners like Changan Automobile Co., generated $900 million in earnings before interest and taxes in 2024, according to Ford Vice Chairman John Lawler (Detroit Free Press, April 18, 2025).


While Ford has halted shipments of fully assembled vehicles, it continues to export U.S.-built engines and transmissions to China. Specifically, the company is shipping 2.7-liter and 3.0-liter engines from its Lima, Ohio, plant, as well as 10-speed transmissions from Livonia, Michigan, and 8-speed transmissions from the Van Dyke Transmission Plant in Sterling Heights (Detroit Free Press, April 18, 2025). Additionally, Ford’s China-made Lincoln Nautilus, produced at the Changan Ford Hangzhou Assembly plant, continues to be exported to the U.S., though it now faces hefty U.S. tariffs (Reuters, April 18, 2025; fordauthority.com, February 6, 2025).


The suspension highlights the broader challenges facing U.S. automakers as they navigate the volatile U.S.-China trade landscape. Industry analysts warn that the tariff war could cost automakers dearly, with the Centre for Automotive Research projecting that a 25% tariff on U.S. automotive imports could increase costs by $108 billion by the end of 2025 (Channels Television, April 19, 2025). For Ford, which produces about 80% of its U.S.-sold vehicles domestically, the impact of export disruptions is somewhat mitigated. However, an internal memo to dealers, seen by Reuters, indicates that Ford may raise prices on new vehicles in the U.S. if tariffs persist, signaling potential ripple effects for American consumers (Reuters, April 18, 2025).


Ford’s broader strategy in China remains significant despite the export halt. In 2024, the automaker sold 442,000 vehicles in China, representing 1.6% of the country’s vast automotive market. This figure includes vehicles manufactured locally through joint ventures, which have helped Ford maintain a foothold in a highly competitive market dominated by domestic brands (madhyamamonline.com, April 19, 2025). However, Ford’s overall sales in China have declined from a peak of 1.3 million vehicles in 2016 to 400,000 in 2024, reflecting the challenges of operating in an increasingly crowded and tariff-laden environment (eletric-vehicles.com, April 18, 2025).


Looking ahead, Ford faces a delicate balancing act. The company must weigh the profitability of its China operations against the mounting costs of tariffs and trade barriers. President Trump has hinted at potential exemptions for some auto-related tariffs, which could offer relief, but no concrete timeline has been provided (news.abplive.com, April 19, 2025). For now, Ford’s suspension of vehicle shipments to China serves as a stark reminder of the real-world consequences of trade wars, affecting not only corporate bottom lines but also the workers in Michigan and Kentucky who build these vehicles.


As the U.S.-China trade dispute shows no signs of abating, Ford and other automakers are left to navigate a complex and unpredictable landscape. Whether through price adjustments, production shifts, or diplomatic resolutions, the path forward will require strategic agility in a market where economic and political forces are increasingly intertwined.


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