Ford has suspended exports of American-made cars to China amid the U.S.-China tariff war, causing its stock price to fall by 1.66%.

Taiwan • Business • 04/22 07:05
Ford has suspended exports of American-made cars to China amid the U.S.-China tariff war, causing its stock price to fall by 1.66%.

Ford Motor Company announced the suspension of exports of several U.S.-made models to China due to the intensifying U.S.-China trade war and China's high tariffs on American-made vehicles. The models affected include the F-150 Raptor, Mustang, Bronco SUV, and Lincoln Navigator. This decision caused Ford's stock price to drop by 1.66% on April 21, 2025, ending at $9.47. Despite halting the export of complete vehicles, Ford continues to export some auto parts to China.

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Ford has suspended exports of American-made cars to China amid the U.S.-China tariff war, causing its stock price to fall by 1.66%.

Ford Motor Company announced the suspension of exports of several U.S.-made models to China due to the intensifying U.S.-China trade war and China's high tariffs on American-made vehicles. The models affected include the F-150 Raptor, Mustang, Bronco SUV, and Lincoln Navigator. This decision caused Ford's stock price to drop by 1.66% on April 21, 2025, ending at $9.47. Despite halting the export of complete vehicles, Ford continues to export some auto parts to China.

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Ford Suspends Export of Models and Background

As of April 18, Ford confirmed it will suspend exporting several models from the U.S. to the Chinese market. These models include the F-150 Raptor, Mustang, and Bronco SUV produced in Michigan, as well as the Lincoln Navigator produced in Kentucky. According to reports from The Wall Street Journal and Reuters, this decision is a direct response to China's recent retaliatory tariff measures.

China has raised import tariffs on U.S.-made vehicles to as high as 150%, including a 35% specific industry tariff, a 20% tariff related to fentanyl, and the original 2.5% base rate. Although some analysts point out that the actual average tariff rate is about 47.5%, it still poses significant cost pressure on high-priced U.S.-made vehicles.

According to Just Auto, Ford exported about 5,500 units of the aforementioned models to China in 2024, far below the past annual average of over 20,000 units. This indicates the substantial impact of U.S.-China trade tensions on Ford's business in China.

Stock Price Reaction and Market Dynamics

Following Ford's announcement of the export suspension, the market reacted swiftly. According to MoneyDJ, Ford's stock price fell 1.66% on April 21, closing at $9.47, bringing the year-to-date decline to 4.34%. Investors have shown a cautious attitude towards the company's operational prospects and potential revenue losses in the Chinese market.

Additionally, according to Yahoo Finance and AInvest, an internal Ford memo suggests the company may consider adjusting new car prices in the U.S. market to cope with tariff pressures and rising costs. Although about 80% of Ford's U.S. sales vehicles are locally produced, providing some tariff buffer, the overall operation still faces pressure.

Parts Export and Current Business in China

Despite the suspension of complete vehicle exports, Ford continues to export some U.S.-made auto parts to China, including engines produced in Ohio and transmissions produced in Michigan. These parts have not been subjected to the same level of tariff impact as complete vehicles.

According to Just Auto and AInvest, Ford's operations in China still achieved about $900 million in operating profit in 2024, but this is down about 40% from three years ago. Additionally, Ford's overall sales in China have also significantly declined, from about 1.3 million units in 2016 to about 400,000 units in 2024, indicating that its competitiveness in the Chinese market is gradually being eroded by local brands such as BYD.

U.S.-China Tariff Policy Background

The background of Ford's export strategy adjustment is the recent escalation of trade tensions between the U.S. and China. According to reports from World Journal and MoneyDJ, the Trump administration imposed a 25% import tariff on non-U.S.-made vehicles and key components in early 2025, officially implementing it on complete vehicles on April 3, with parts tariffs to take effect on May 3. China, in turn, imposed tariffs as high as 150%, specifically targeting U.S.-made electric vehicles and high-priced models.

According to Chinese customs data, the value of passenger cars imported from the U.S. has dropped to its lowest level since 2015. In March 2025, the total value of passenger cars imported from the U.S. was only $155.1 million, a decrease of 2.8 times compared to the same period last year. The U.S. has also dropped from the 4th to the 5th largest source of automotive imports in China, indicating its market share continues to shrink.

Ford's Global Strategy Adjustment

Facing tariff and market pressures, Ford is reassessing its global supply chain and manufacturing strategy. According to Silicon Review, Ford has announced an investment of $4.8 billion in its German subsidiary Ford-Werke to enhance its competitiveness in the European market. Additionally, the company maintains the arrangement of importing the Lincoln Nautilus from China to the U.S. market, indicating that it still maintains a two-way trade strategy in the global market.

Although Ford has suspended complete vehicle exports to China, it continues to sell locally produced models in the Chinese market and has not completely withdrawn. According to Finance Yahoo, Ford internally expects that if tariffs persist, it may further adjust product prices and supply chain configurations.

References

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