Ford halts U.S. vehicle shipments to China amid retaliatory tariffs

04/24/2025 / By Laura Harris

Ford suspended shipments of American-made models like the F-150 Raptor, Mustang, Bronco and Lincoln Navigator to China due to retaliatory tariffs exceeding 150 percent.
China raised tariffs on U.S. vehicles to 125 percent (from 84 percent) in response to U.S. measures, including “reciprocal” tariffs, fentanyl-related levies and Section 301 tariffs on Chinese EVs and batteries.
Ford sold only 400,000 vehicles in China last year, relying mainly on local production. However, suspending high-margin exports may hurt profitability.
BMW (25,000 annual exports from South Carolina) and Mercedes-Benz (Alabama EV plant) face risks, while GM may follow Ford’s lead if tariffs persist.
Analysts warn that trade disputes could inflate battery and hardware prices, threatening electrification goals and consumer affordability.

Ford Motor Co. has suspended shipments of several American-made vehicles to China in response to escalating trade tensions and retaliatory tariffs exceeding 150 percent.

Recently, China has raised tariffs on U.S.-made vehicles to 125 percent, a sharp increase from 84 percent, as retaliation for Washington’s own trade restrictions. The U.S. has imposed a mix of 125 percent “reciprocal” tariffs, an additional 20 percent levy over the fentanyl crisis and Section 301 tariffs ranging from 7.5 percent to 100 percent on Chinese imports, including electric vehicles (EVs) and batteries. (Related: China STRIKES BACK, imposes retaliatory tariffs on U.S. goods as trade tensions escalate.)

This has forced Ford to reassess supply chains and pricing strategies. The automaker fully halted exports of the F-150 Raptor pickup, Mustang muscle car, Bronco SUV and Lincoln Navigator, all built in Michigan and Kentucky. These models now face tariffs as high as 150 percent upon entering China.

“We have adjusted exports from the U.S. to China in light of the current tariffs,” Ford spokesperson Robyn Jackson said. However, Ford continues importing the Lincoln Nautilus from China, with shipments ongoing.

Last year, Ford sold 400,000 vehicles in China, a fraction of its global volume, as domestic automakers like BYD and Geely dominate the market. The company primarily relies on local joint ventures for regional production, using Chinese factories to export cars to Southeast Asia and South America, limiting direct tariff exposure. Meaning, halting shipments of high-margin models like the Mustang and Navigator may still dent profitability.

“They probably decided it’s too cost-prohibitive right now and they are probably hoping a tariff deal gets worked out,” David Whiston, analyst at financial services firm Morningstar Inc., wrote in an email. “The vehicles they ship over there are primarily more for wealthy Chinese consumers due to their high-end price points and not a core part of their China strategy.”

Impact of auto tariffs poses risks beyond Ford

The tariffs pose risks beyond Ford. BMW’s plant in Spartanburg, South Carolina, which exports 25,000 vehicles annually to China, and Mercedes-Benz’s Alabama EV factory, a key supplier to China’s massive auto market, could see profits erode if trade tensions persist.

So far, General Motors has not announced changes to its China operations, but analysts predict Detroit’s automakers may follow Ford’s lead if tariffs remain prohibitive.

“This is the shot across the bow to the White House: They’re saying, ‘We don’t know the rules of the game, and this is what we have to do for our business,'” said Daniel Ives, analyst at wealth advisory firm Wedbush Securities Inc. “They had to make this move because the tariff situation is untenable. I’d expect GM and others could follow suit. It’s just the beginning. Ford is being preemptive, and it’s smart to be cautious in these unprecedented times.”

Moreover, analysts warn that consumers could face even higher EV costs, already a contentious issue in the Biden administration’s push for electrification, as retaliatory measures drive up battery and hardware expenses.

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