Ford Motor said on Friday it has suspended shipments of its U.S.-built vehicles to China due to rising tariff pressures, becoming the latest automaker to adjust its export strategy amid growing trade tensions.
“We have adjusted exports from the U.S. to China in light of the current tariffs,” the company said in a statement. The move affects Ford’s SUVs, pickup trucks, and sports cars, which now face tariffs of up to 150% when entering the Chinese market.
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The Wall Street Journal first reported the development, citing sources familiar with the matter.
Despite the halt in shipments of assembled vehicles, Ford said it will continue to export engines and transmissions from the U.S. to China. Shipments of its Lincoln Nautilus, which is built locally in China, are also expected to proceed.
Ford, which produces around 80% of its U.S.-sold vehicles domestically, is considered to be better positioned than some rivals to withstand the impact of tariffs. However, the automaker is still expected to raise prices on some models if trade tensions persist, according to an internal memo sent to dealers and reviewed by Reuters.
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Earlier this month, the Center for Automotive Research estimated that a 25% tariff on automotive imports, proposed under the Trump administration, could add approximately $108 billion in costs for automakers by 2025.
President Donald Trump said this week he is considering modifications to auto-related tariffs, including potential exemptions, though no official policy changes have been announced.