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Trade war: Ford looks at making more cars in China to beat tariffs

With tariffs on imports of US-made autos into China reaching 40 per cent, the American car maker is considering boosting production of some models there

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Ford is considering speeding up making Lincoln models in China. Photo: AFP

Ford is looking at speeding up plans to build more cars in Chinese plants, with the growing trade war with the United States making US exports less attractive, a senior executive has said.

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Joseph Hinrichs, Ford’s executive vice-president for global operations, said that he saw no easy resolution to the US-China trade war, and that the company was planning to launch new vehicles in China – including for its premium Lincoln brand – to halt its recent slide in that market.

President Donald Trump on Monday imposed tariffs on an additional US$200 billion of Chinese goods, prompting swift retaliation from Beijing on US$60 billion in US products.

“We have long been advocates for balanced and free trade,” Hinrichs said on Monday. “We continue to encourage both the US administration and the Chinese government that it’s in everyone’s interest to work out their differences.”

But he said: “I believe this US-China discussion will go on for a while.”

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The increasing exchange of tariffs makes it difficult to plan for the future and, with tariffs on vehicles exported to China now reaching 40 per cent, there is no business case for exporting vehicles from the US, he said.

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