The shipment halt is a logical conclusion to something no one would buy.
Retaliatory Tariffs Made Ford Trucks Unaffordable
The Wall Street Journal reports Ford Halts Shipments of F-150s and Other Models to China
The company halted shipments this week of F-150 Raptors, Mustang muscle cars and Bronco SUVs built in Michigan, as well as Lincoln Navigators made in Kentucky, according to people familiar with the matter.
China’s recent countermeasures in response to U.S. import taxes have pushed tariffs on those vehicles as high as 150%, the people said. The F-150 Raptor sells for nearly $100,000 in China.
“We have adjusted exports from the U.S. to China in light of the current tariffs,” a Ford spokeswoman said, without specifying models or timing.
The China export business represents a small but profitable operation for Ford. The automaker began shipping some of its most-recognizable nameplates to the country about a decade ago, in part to burnish its brand image among Chinese car buyers.
Last year, Ford shipped about 5,500 Broncos, F-150s, Mustangs and Navigators to China. That is below the annual average of more than 20,000 vehicle exports to China over the past decade.
Adjusted to Zero
The trend of US exports to China was headed to zero anyway as a result of four things.
Trump tariffs, Biden tariffs, Trump tariffs, and BYD.
The latter is the most important, with China. But the real issue with Ford is all or the tariffs Trump put on every nation plus the subsequent retaliations.
Tariffs on parts from Mexico and Canada will further drive up the price of trucks and thus exports.
We call this winning.
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Tariffs / Trade Wars do not work for anyone!
Last year the U.S. exported just over $10 billion in autos and trucks to China. We imported $1.8 billion fro China. Our vehicle trade surplus was $8.2 billion.
The result of trumps tariffs is that U.S. vehicle exports will drop to near zero… Jobs will be lost. Boeing contracts cancelled as well, and it is only beginning.
Elections have consequences.
So was the answer to continue the unfair trade practices China practiced against the west? Endless safety checks, tariffs of their own, and cultural practices prejudicial to the purchase of foreign goods? What is lost in the whole tariff debate is that the old system was not working. Tariffs are rather a benign policy compared to past practices which often included military conflict.
In actuality the tariff difference was small with china. The problem is that if trump tells a lie often enough some people will believe him. Competition resulted in the trade imbalance. U.S. corporations were already moving some manufacturing back to the U.S. before the tariffs because of the covid supply disruptions. It was working at a reasonable pace. With our 2nd term idiot in chief demanding that manufacturing be done at home, he is killing many of those investments and markets for our products and our farmers in particular. I myself ended negotiations for land that I would have attached to my farm. Now I have decided to not plant any crops and only build my soils until such time as we have a stable government. Clover is beautiful and nitrogen fixing…
Even though my farmer friends support trump he is destroying the market for their crops. But it is easier for them to keep lying to each other than it is for them to admit they fell for trumps lies.
Russias Wheat exports will be massive to China this year. Americas wheat farmers will lose money again. Who does trump work for?
it was working. it had some issues, but to say it was not working is false.
i had a kitchen plumbing issue i had to deal with a month ago. I didn’t douse my house in gasoline and light a match to burn it all down because I had an issue.
as other comments point out, there were many bright spots like the automobile surplus with China, and, of course, the availability of cheap goods. which is a good alternative to have especially for US citizens without a lot of money (which is most US citizens).
I suspect the Chinese have a whole different set of male insecurities and ego compensation requirements from the totally loaded down psyche of American males who can afford such a boondoggle as those Ford trucks.
Bipolar world is getting obvious. World is already divided into global south and north.
US and China can’t be reconciled. Crack is too large.
Not auto related but Bloomberg states Boeing are flying new build aircraft out of China.
Blank sailings are increasing rapidly. This will impact dock workers and truckers. Also train traffic. Definitely a transportation recession, maybe worse coming. Most likely a future Mish topic. Trouble with playing chess 4D or otherwise, is one can lose.
I have seen more than a dozen stories like this one. US layoffs because of Trump tariffs. Mack Trucks.
https://www.jalopnik.com/1837740/mack-trucks-worker-layoffs-tariff-impact/
I wonder if Trump’s BS will push companies to automate faster?
For companies to make an investment decision, they want a little certainty. They have no certainty with Trump. So they will sit on their hands. No new investment decisions. Whether with workers or automation.
Look at the auto industry. Shutting production. Laying workers off. Delaying investment decisions. Because of uncertainty.
True to a degree. But with automation, it is much easier to tune operations or even shut down when necessary, much easier and with less worries than with human workers.
So even if the initial cost of automating work is higher, the long-term flexibility in operations in today’s business environment may be worth any added expense.
After a hundred years making vehicles in Brazil, Ford shut down all its plants. BYD bought them and is fitting them to make hybrid cars.
This sure feels like the decline of the US. I expected better. By all means, take back manufacturing if that is important to you but do it smartly through competition and incentives and in a targeted fashion, not by throwing a grenade into world affairs and hoping for the best. You already have world beating corporations and technology but their market share is now at risk as the world looks for alternatives as it turns it’s collective back on America. Do you want to risk the sale of Boeing aircraft so you can manufacture t shirts and running shoes again? The democrats were pathetic but this is worse in some ways. Also, don’t misrepresent your reasons for repatriating and fling false accusations against countries where it is not warranted. It may even be beneficial to attempt fiscal restraint to balance your budget instead of blaming everyone else.
My experience with Fords is Trump did China a favor.
Still “Fixed Or Repaired Daily”?
Found On Road Dead
It’s a time-tested strategy, guaranteed to work. This 1 min video explains it:
https://m.youtube.com/watch?v=Z_JOGmXpe5I&pp=ygUeY2xlYXZvbiBsaXR0bGUgYmxhemluZyBzYWRkbGVz
Nice summation !
We recently owned a Ford Plug-in Hybrid and it is ONLY because it was cheap, and tow-able behind our RV with all 4 wheels down.
The Hybrid Battery gave up the Ghost with less than 55,000 miles on it. That will be our last Ford ever. We switched to a Subaru.
Which Subaru? Made in Japan or in the US ?
Ford tells dealers prices could go up in June if Trump’s tariffs remain https://www.cnn.com/2025/04/17/business/ford-car-prices-tariffs/index.html
Best to Mish. You have provided such incredible value, with fine wit. There will be many more chapters!
American auto companies have been selling cars in China since 1997. (Volkswagen has been there since the 1980s). At one point GM had the largest sales in China.
These were all joint ventures. China learned a lot from them.
Most US autos sold in China, are produced in China. But not all. Since 2017, China imported around $10 billion per year in autos from the US.
However, Chinese auto makers have now surpassed US automakers in quality and price. As a result, US auto sales in China have been dropping. So have some imports from the US.
We actually import some cars from China; just not from Chinese companies.
The Buick Envision, Lincoln Nautilus, Volvo S90, and Polestar models are examples of models made in China and imported to the US.
Last year we imported $1.6 billion in autos from China, while exporting $10 billion in autos (including the F-150).
The US and Canada do not allow Chinese branded cars imports because of our auto pact. Mexico does allow them. 30% of Mexican auto imports are from China.
The rest of the world is buying autos from China. They will soon dominate worldwide auto sales because they produce better cars at lower prices.
Papa, we live in Portugal in the winters. China made a deal with the country to be exempt from Income taxes for 10 years, after opening.
Then suddenly a whole slew of CHINESE JUNK STORES opened, all with low prices and the stuff is CRAP. I bought Ice Trays and they will not eject the ice. I have bought other items and they do now work.
Tools are simply SHIT made pot metal. We have NOT been impressed with Chinese designs or quality.
And, to top it off: the Stores are operated by The MOST SOUR-PUSSED CHINESE nationals who are unfriendly, never greet customers and are simply assholes.
The locals HATE THEM.
Not interested in discussing Chinese dollar store stuff or staff. This thread is on autos.
Tell me if Chinese autos are being sold in Portugal. Which models. Prices. Whether consumers are buying them and liking them. Etc
I understand that BYD is sold in Portugal in small numbers.
You’re buying the wrong items: my computer hub, phone charger, earbuds and dashcam are Chinese designed and made. They have a brand reputation. You might be buying a kitchen stuff and wouldn’t know they are Chinese brands.
PS: I bought a Chinese grain mill on Amazon, and returned it because it wasn’t good for poppy seed. They accepted the return, but asked me what was wrong. I found it a genuine question, so I explain it to them.
i live in NYC. i have lived all over the usa and world. plenty of assholes of all nationalities. as well as nice folks. you are on an economics blog about autos and discussing ice trays you bought for peanuts from a junk store. that made me LOL. oh the humanity.
China used to a gold mine for Western car makers, while they were relieved of their technology, and know how. Now, the Chinese are eating their lunch.
Next will be airplanes. Airbus opened an assembly line for their most popular single aisle plane, and lo and behold, the COMAC C919.
Which is just as well, since the delivery time for a Boeing or Airbus is 10 years, and they like it that way.
China is becoming the dominant manufacturer in the world. They have spent 3 decades developing the most modern, efficient, internal supply chain system that gives them this advantage. Which no one can compete with at this moment in time.
They are also electrifying their economy at a dizzying pace. They are adding more cheap renewable energy to their economy each year than the rest of the world combined. Their long term goal is to reduce their dependence on imported fossil fuels. Though they will still be using coal, natgas and oil for a long time. And they will buy fossil fuels and store them whenever they are cheap.
I was driven around Scotland in one, not for me, regardless of price, I will stick with my VW and small Ford.
Thanks.
Also, the Buick Encore and Envista are made in S Korea and imported to the US.
Wow, feel better, you are now the Bionic Mish!
This how you know trump knows zero about business. He’s crashing the economy. Again
I think it’s pretty well proven he understands business. What he doesn’t understand is economics which is not uncommon. What is uncommon, is that he seems to hold a mercantilist view of trade which is extremely dangerous for world peace. The US exists because of its opposition to the economic insanity that mercantilism creates.
Trump is being advised by fools and ironically what will stop him from riding the ship down like an ideologue, is his massive ego which will only accept so much in market declines before he reverses course. Trump has lots of ideas, but really believes in nothing but looking like he’s winning.
To your point, Peter Navarro, who I interviewed a few years back is one of his trade gurus. Ivy League guy but I wasn’t impressed by the economic nonsense spouted back then.
trump is an actor. full stop. he only cares about being in headlines. since at least the 1970s this is true. he wanted to go to USC to be an actor. daddy said NO and gave him a few hundred million properties as a consolation prize. he pissed that away in about 15 years. he’s a moron but a great actor. the best of our generation. charlie chaplin said hitler was the greatest actor of his generation. even did a great film about it. hitler loved it, too. hitler was a wonderful actor, too. i’m not comparing trump to hitler. trump is much dumber. thank heavens.
All international makes have been rapidly trending to zero sales in China.
The market is brutal and wildly oversupplied. Tesla was the only international brand holding on to market share – but they’re not imports.
Trump’s tariffs have no impact on these exports whatsoever.
Hi Mish –
Glad you caught this serious issue before incurring damage to your heart. I read all of your columns but rarely comment.
Best Wishes
Back Home – Mee to Have WordPress remove that insert
Thanks for all the kind words
Glad to see you home and posting. Hope you have a speedy recovery.
Rest up. We can wait until you are back in form. No hurry.
glad you are alright. yoga and meditation is a great compliment to walking as we all age. hang in there old sport.
Great that you’re okay and back to teeing off both the TCDNW (Trump can do no wrong) and all the regular TDS sufferers.
Good your’e back, first saw you on Russia Today, which is how I found this blog.