President of the United States Donald Trump recently stirred a controversial debate as he tweeted saying that because of his 25% tariffs on chinese-made automobiles Ford has now chose to make their cars in the US.
"Without the tariffs, the business case was pretty solid for that model in the USA market", Kim said.
The president went off on the high-tech company over the weekend - using Twitter to demand that Apple move its production to the U.S. Trump concedes in his tweet that some Apple Inc. products may become more expensive if his administration imposes "massive" additional tariffs on Chinese-made goods.
Ford Motor Company is not planning to build its Focus Active vehicles in the U.S.
Apple might increase US production in the next 5 - 10 years, but it will still remain a small part of its manufacturing footprint. Such a step would significantly escalate his trade war with Beijing and would likely increase costs for a broad range of USA businesses and consumers. It's too costly to build that vehicle here and they weren't planning to.
Ford has traditionally produced a range of sedans, including the Focus, Taurus and Fiesta.
According to industry analyst Ed Kim from AutoPacific, there was a strong chance the Focus Active would have been sold in the United States if it wasn't for the tariffs. Mr. Trump insinuated in a weekend Twitter post that Ford would build the small vehicle in USA instead of importing it from China.
Building the auto may still be the plan, but not in the USA, she said, as did other analysts. The profit margins were simply too small to be worth it. Trump said Friday he is considering another US$267 billion of tariffs on China, which analysts said will affect virtually every category of consumer goods, to retaliate against what he calls unfair trade practices.
Trump, who is challenging China, Mexico, Canada and the European Union on trade issues, has also expressed displeasure about the large USA trade deficit with Japan.
The $200 billion of Chinese goods on the US list includes some consumer products such as cameras and recording devices, luggage, handbags, tires and vacuum cleaners, with additional tariffs ranging from 10 to 25 percent.
The world's two biggest economies are clashing over United States allegations that China deploys predatory tactics - including outright cybertheft - to acquire technology from U.S. companies and challenge American technological dominance.