Ford tells Trump why it won't make China-built auto in US

Ford tells Trump why it won't make China-built auto in US

As pointed out in the Detroit Free Press, China's import tax for World Trade Organization members like the United States was 15 percent, since raised to 40 percent.

China's annual consumer inflation accelerated to 2.3 percent in August, the fastest pace since February this year and beating expectations, official data showed on Monday. "Without the tariffs, the business case was pretty solid for that model in the USA market", Kim said.

Manufacturing iPhones in the USA would increase prices too.

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

Despite a claim to the contrary by President Trump, Ford says it has no plans to build its compact Focus Active model in the United States. While Democrats, and the American left, rarely shy away from criticizing the president, even some conservatives and Republicans have criticized Trump's trade policies.

President Donald Trump on Saturday took aim at Apple after the tech giant said the White House's proposed tariffs on China could result in price increases on popular consumer devices such as AirPods, the company's wireless headphones, and the Apple Watch.

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"It is hard to see how tariffs that hurt US companies and USA consumers will advance the Government's objectives with respect to China's technology policies", Apple wrote. This week, Apple said in a regulatory filing that the tariffs could drive up the cost of various products (and/or their components) by 25 per cent, saying that $US200 ($281) billion in proposed tariffs would hurt the USA much more than China. Start building new plants now.

The presidential tweet is the latest salvo in a dispute between the Trump administration and companies that fear tariffs will hurt their business. The company had plans to begin making the vehicle in China in the latter half of 2019 and exporting them to the U.S. market.

In August, China unveiled a proposed list of retaliatory tariffs on $60 billion of US goods ranging from liquefied natural gas to some types of aircraft, should Washington activate the tariffs on its $200 billion list. A recent study by Bank of America found that iPhone prices would rise 20% if they were manufactured 100% in the U.S.

For now, that means Ford simply won't sell the vehicle in the United States.

The Focus Active may be the first vehicle officially killed by the administration's tariffs, but it likely won't be the last.

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