Donald Trump says tariffs mean Ford can make Focus Active at home. Ford says it won’t
Ford had in August said it had killed a plan to import the Focus Active as Donald Trump’s tariffs on China would increase costs too much for the company to hit its profit targets
US President Donald Trump on Sunday suggested Ford Motor Co. could begin making a small car in the United States instead of importing it from China. But the automaker quickly issued a statement saying it has no such plans.
In August, Ford announced it had killed a plan to import the Focus Active, a roomy hatchback, saying the tariffs Trump has threatened to impose on vehicles built in China would increase costs too much for the company to hit its profit targets.
Trump hailed the decision in a Twitter post Sunday, apparently after he saw a report about the Focus Active on television. “’Ford has abruptly killed a plan to sell a Chinese-made small vehicle in the US because of the prospect of higher US tariffs.’ CNBC. This is just the beginning. This car can now be BUILT IN THE USA and Ford will pay no tariffs!”
Ford announced its plan to withhold the Focus Active from the US market on 31 August. After Trump’s tweet, the company responded with a statement that reiterated its reasoning: the niche model was not suited for domestic production. “It would not be profitable to build the Focus Active in the US given an expected annual sales volume of fewer than 50,000 units and its competitive segment,” the company said.
Ford added that it was expanding its lineup in the United States by adding trucks, SUVs, hybrids and electric models as it aims to lift its profit margin in North America to 10%.
Trump’s tweet about the Focus Active was his second in two days aimed at US companies whose products face tariffs because they are made in China. On Saturday, he called on Apple to make iPhones in the United States if it doesn’t want to pay import tariffs.