Ford says it's still making hatchback overseas despite President Trump's tweet

Ford Focus on display in China

Ford Focus on display in China

"It would not be profitable to the build the Focus Active in the USA given an expected annual sales volume of fewer than 500,000 units", a Ford statement said.

The following are comments made by USA companies since Trump's announcement of tariffs on $200 billion of Chinese imports.

Tweeting on Sunday, the president quoted a CNBC report that Ford would no longer be selling its Chinese-build Focus Active in the United States, adding: "This is just the beginning".

On Friday, Trump said he was ready to levy additional taxes on practically all Chinese imports, threatening duties on $267 billion of goods over and above planned tariffs on $200 billion of Chinese products.

The Ford Focus Active, a small crossover vehicle now sold in Europe, was slated to begin production in China for the USA market.

Apple, like other tech giants, has benefited from the last year's overhaul to the US tax code, and the company has committed to returning much of the $252 billion in cash it held overseas.

With Ford joining Apple in criticizing President Trump's tariffs, the pressure on the administration to back down and de-escalate the trade war is perhaps greater than ever.

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


The automaker has already said it has no plans to restart production elsewhere.

In a letter to the Office of United States Trade Representative, Apple said the Apple Watch, Apple Pencil, Air Pods, and leather cases for the iPhone would be affected by Trump's proposed tariffs.

Apple didn't immediately respond to a request for a comment on Trump's latest broadside.

And, according to BOA Merrill Lynch analyst Wamsi Mohan, Apple may just give in to the president's request by asking its partners to bring some iPhone assembly operations into the US, which will lead to higher prices. The data points to a job market that remains resilient after almost a decade of economic growth, and even with tariffs and counter-tariffs on imports and exports looming over US employers that rely on global trade.

Auto industry analyst Ed Kim told the Guardian that Trump's tariffs have, effectively, ruined Ford's plan for the Focus.

"Without the tariffs, the business case was pretty solid for that model in the USA market", Kim said. Yet that overlooks other significant costs, such as the difference in wages between the USA and China.

Chinese factories making everything from bikes to tyres, plastics and textiles are moving assembly lines overseas to skirt higher customs taxes on their exports to the United States and elsewhere, according to public filings.

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

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