Ford Rules Out Making Focus Active Wagon In The U.S.

Trump: Apple could be tax free if it makes products in the US

Ford will not build new Focus cars in US, despite Trump tariffs tweet

China's foreign ministry said on Monday it would retaliate if U.S. President Donald Trump goes ahead with his plan of imposing tariffs on practically all Chinese imports.

Citing Trump's new tariffs, Ford on August 31 said it was dropping plans to ship the Focus Active from China to America.

"If the US side obstinately clings to its course and takes any new tariff measures against China, then the Chinese side will inevitably take countermeasures to resolutely protect our legitimate rights", Foreign Ministry spokesman Geng Shuang told a regular briefing, when asked about Trump's warning.

"Because all tariffs ultimately show up as a tax on USA consumers, they will increase the cost of Apple products that our customers have come to rely on in their daily lives", Apple's letter said.

It now appears as though Trump's claim that Ford can now move production of their vehicle, the Focus Active, to the United States, is, as Trump would call it, "FAKE NEWS". He then encouraged Apple to make more products in the US instead.

"Back to US' manufacturing seems to be back on the agenda for President Trump ..."

On July 6, the United States started to impose a 25 per cent tax on $34 billion worth of Chinese imports, including motor vehicles. While Ford might choose not to build the Focus in China, it does have a multiple number of plants in other countries it can choose to build the small hatchback in. Last year, Ford made a decision to shift production to China.

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Ford, BMW, Mercedes and others export about 250,000 vehicles to China from the USA each year, Dziczek said.

Neither Apple nor the White House immediately responded to requests for comment.

However, a Ford spokesman Mike Levine indicated that there isn't a good a business case to build the low-margin, niche model in the U.S. Ford confirmed to The New York Times that it will not build or sell the Focus Active in the United States.

The automaker emphasized that it already has a substantial manufacturing presence in the U.S.

USA businesses say higher American wages will offset the benefits they gain by avoiding tariffs affecting their imports from China.

Chip giant Intel has also come out against the proposed tariffs, arguing they would "result in widespread harm to the USA economy" that would affect CPUs, transmission devices, printed circuit boards, routers, switches, and optical fiber cables.

The White House has accused China of stealing US intellectual property and forcing American companies to share their technology with Chinese companies.

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