China promises to retaliate if U.S. imposes more tariffs

Andrew Cummings
September 10, 2018

"It was just yesterday that President Trump tweeted, "'Ford has abruptly killed a plan to sell a Chinese-made small vehicle in the U.S. because of the prospect of higher U.S. Tariffs.' CNBC. But disagreements between the two major economic powers run deeper than just the trade balance and tensions remain over limits on US firms' access to Chinese markets, intellectual property protection, technology transfers, and investment.

Given that Ford expects no more than 50,000 annual sales for the Focus Active, it wouldn't be profitable to build it in the United States, The Guardian reports.

In a tweet Sunday, Trump said Ford's decision not to import a new sport-utility vehicle from China means the Focus Active "can now be built in the U.S.A".

Late last month, Ford announced it won't bring the rugged Focus Active hatchback and wagon to the United States, due to the President Donald Trump Administration's tariffs on Chinese imports.


"[Ford can make Focuses] in many other plants around the world, so if they chose to continue to sell a Focus variant in the USA market, there are several options other than building it in the United States".

The trade surplus hit $31.05 billion in August and it continues to add fuel to the already heating up trade rhetoric between the U.S. and China.

The tweet followed a letter Apple sent to the Trump administration saying that the proposed $200 billion tariffs on Chinese-made products would result in many Apple products getting hit by the 25 percent increase in import tax.

Ford didn't move production of the Focus to China by accident; it did so because the USA market has shifted away from smaller vehicles toward SUVs, which has made production of the Focus in the US -a relatively expensive location-an illogical choice.


Apple's letter says, "Our concern with these tariffs is that the USA will be hardest hit, and that will result in lower United States growth and competitiveness and higher prices for U.S. consumers".

Trump told reporters Friday that the tariffs would "take place very soon". It asked the government to come up with other measures to bolster the economy.

Shares of Apple and its suppliers fell on the news.


Other reports by iNewsToday

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