Donald Trump doesn’t fully understand how global trade works, former US negotiators say amid trade war tariff action
Ford pushes back after the president’s tweet about its decision not to import a new model to the US
Former trade officials have decried US President Donald Trump’s understanding of international trade and tariffs after his remarks on Sunday that Ford’s decision not to sell an upcoming car model in the United States was a triumph for the country.
Tweeting on Sunday, the president quoted a CNBC report that Ford would no longer be selling its Chinese-build Focus Active in the US, saying: “This is just the beginning. This car can now be BUILT IN THE U.S.A. and Ford will pay no tariffs!”
Ford promptly shot down such a prospect, responding that “it would not be profitable” for the company to build the car in the US because of the relatively low sales volume it has forecast. The vehicle will be built in both Chongqing, China, and Saarlouis, Germany, a Ford spokesman said in an interview on Monday.
Ford said the decision not to import the Focus Active to the US was made because of the “negative financial impact of new tariffs on vehicles imported from China”. The Trump administration levied 25 per cent duties on US$34 billion of Chinese imports, including motor vehicles, in July.
The notion that a US manufacturer’s decision not to sell one of its products in the US is a victory for Trump’s “America first” trade agenda has bewildered observers, including a number of former US trade officials.
