Ford Motor Company SUV expeditions, vans and sports cars in China due to reprisal rates of up to 150% imposed by China in response to American import taxes. The affected models include F-150 Raptors, Mustangs, Bronco SUVs built by Michigan and Lincoln navigators made in Kentucky. Ford confirmed the suspension, declaring: “We have adjusted exports from the United States to China in light of current prices.” The shipments of engines and transmissions built by the United States in China continue, and Lincoln Nautilus manufactured by China is still exported despite the prices.
Ford, which produces 80% of its American vehicles at the national level, is better positioned than certain competitors but can increase the prices of vehicles if the prices persist, according to an internal memo. THE Car Considers that 25% prices on automotive imports could cost $ 108 billion to car manufacturers in 2025. The Wall Street Journal reported the stop for the first time, citing sources familiar with the issue.
The suspension of Ford of SUV, collection and sports cars to China due to 150% tariffs should lead to a loss of profits of $ 900 million on the loss of sales in a major market, based on $ 330 million in revenue against 5,500 vehicles. Prices on imported parts (25%) and vehicles such as Maverick and Bronco Sport Mexico will increase production costs. Even vehicles assembled in the United States, such as the F-150, depend on 40 to 60% of imported parts, increasing costs by around $ 5,000 per vehicle. The Center for Automotive Research projects a cost climbing of $ 108 billion for American car manufacturers in 2025.
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Analysts have reduced the Ford 2025 action forecasts by 63%, reflecting higher costs and potential sales reductions. Morningstar Maintains the fair value of Ford at $ 16 per share, modeling the prices for nine months. Ford warned dealers of potential price increases from June 2025 if the prices persist, with estimates of 5% of increases for American manufacturing vehicles and 15 to 20% for imported models. This could reduce demand, by tightening more profits.
Ford’s “From America” price discounts aim to maintain sales, taking advantage of its 80% American production to mitigate pricing impacts. However, reduced margins and fewer discounts can still affect profitability. CEO of Ford Jim Farley Note that prolonged prices could eliminate billions of industry benefits, Ford facing large losses if the prices extend beyond weeks.
Despite Ford’s relatively strong position due to high interior production, dependence on imported parts and loss of sales in China has significant risks. Profit reductions should be steep unless the prices are relaxed or the supply chains are restructured, which could take years and billions of investment. 25% tariffs on imported vehicles and automotive parts from all countries, except Canada, in force from the beginning of 2025. 100% additional prices on electric vehicles (VE) from China, although Ford has a minimum exposure here. The prices apply to critical components such as batteries, steel and aluminum, increasing costs for American assembled vehicles.
Impact on costs
Ford vehicles, even those assembled in the United States, depend on 40 to 60% of imported parts (for example, Mexico, Asia). The Center for Automotive Research estimates an increase in costs of $ 5,000 per vehicle due to parts. Ford The Maverick pick-up built by Mexican and the Bronco Sport SUV face 25% of vehicles, potentially increasing prices by 15 to 20%. The total climbing of the costs of the industry projected at $ 108 billion in 2025, Ford having a significant action because of its scale.
Ford warned price increases from June 2025, vehicles manufactured in the United States potentially increasing 5% and models imported from 15 to 20%. The higher prices risk reduced demand, especially for segments sensitive to prices such as compact trucks and SUVs. Ford’s “From America” reduction program aims to compensate for the reductions in demand but compresses the beneficiary margins.
China’s reprisal prices
Up to 150% of prices on American vehicles, targeting the high margin SUVs of Ford (Bronco, Lincoln Navigator), vans (F-150 Raptor) and sports cars (Mustang). Implementation in response to American prices, in force at the beginning of 2025. Ford interrupted the shipments of models assigned to China, its second market, resulting in a loss of profit of $ 900 million out of 5,500 vehicles ($ 330 million in revenues).
Continuous exports of engines, transmissions and transmissions and Lincoln Nautilus manufactured by China face prices, reducing profitability. The lost sales in China weaken Ford’s competitive position against national Chinese car manufacturers and rivals exempt from tariff. The long -term absence of China could erode the presence of the brand, requiring costly back -to -school efforts.
Analysts have reduced Ford 2025’s action by Ford, reflecting higher costs and lost sales in China. The estimate of the fair value of Morningstar remains $ 16 per share, assuming that the prices of the last month. The prices of imported parts increase production costs in the Ford range, even for its 80% vehicles produced in the United States. The restructuring of the supply chain to reduce dependence on imports could cost billions and take years, without immediate relief.
Price increases to compensate for prices can reduce sales volume, while discounts to maintain the demand for demand reduction. The trucks of the Ford high margin F series, essential to profits, face pressure from the costs of imported components, threatening a key income driver. Ford CEO Jim Farley warned that prolonged rates could erase billions of industry profits, Ford exposure amplified by his dependence on trucks and SUVs. The Center for Automotive Research estimates a profit of $ 7,000 per vehicle for American car manufacturers under sustained prices.
Ford explores an increase in internal supply, but the remutillage of the supply chains is slow and with high capital intensity. Continuous motor and transmission exports to China suggest selective costs to maintain a certain presence on the market. Ford shares fell 35.2% in annual shift, reflecting investor concerns concerning the drop in prices. This highlights fears of margins and long -term competitiveness, some investors betting on the relief of prices or the adaptability of Ford.
Ford’s 80% production of 80% gives it an advantage over competitors like Stellantis (50% American production) but exposure to imported parts limits the advantages. Competitors like Toyota, with more localized supply chains, can be faced with less serious impacts, putting pressure on the market share of Ford. Moving parts ‘production in the United States or Canada could mitigate prices but requires $ 10 to 20 billion in industry investment, according to analysts’ estimates. The existing American manufacturing base of Ford (for example, Michigan, Kentucky Plants) provides a base but not complete insulation.
Higher prices of vehicles could transform demand for smaller and cheaper models or competitors, tightening the Ford-Camik-Wasage portfolio. Prices inflationary pressures can further erode the purchasing power of consumers, amplifying sales risks. The duration of the price remains clear. A nine -month scenario is modeled, but the extension in 2026 could double profit loss. Potential exemptions for Canada under USMCA Can move the Ford’s supply strategy, although the exclusion of Mexico complicates it.
Prices impose immediate profit blows thanks to the loss of sales in China ($ 900 million), higher production costs ($ 5,000 per vehicle) and a drop in potential demand for price increases. Ford’s benefit in 2025 is confronted with a degradation of 63%, with long -term risks for market share and competitiveness, unless prices feel or the supply chains adapt.
