Despite Trump's Suggestion, Ford Won't Produce This Vehicle In The US

Andrew Cummings
September 11, 2018

The US president said on Twitter that Apple should make its products in the US instead of China to avoid suffering the consequences of his trade war with Beijing.

The Australian dollar, a proxy for Chinese growth because of the large amount of metals it sells there, hovered near its lowest in 2 1/2 years and was last at $0.7115. "Without the tariffs, the business case was pretty solid for that model in the USA market", Kim said.

US stock investors are looking to extend momentum after corporate profits hit a record high in the second quarter, while investors think an Italian debt crisis would spark a conflict with Europe that would hurt the domestic economy.

Apple's argument is that the tariffs will lead to higher USA consumer prices.

Ford Motor Company is not planning to build its Focus Active vehicles in the U.S.

But the President offered Apple an "easy solution" to its potential price headache: just make it in the US.

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.

"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".

Shares in many Apple suppliers in Asia fell on Monday following Donald Trump's tweet warning that Apple should focus on manufacturing its iPhones in the US.

Analyst Wamsi Mohan said that the most likely scenario would see Apple moving 10 percent of its iPhone assembly stateside, resulting in an average iPhone selling price increase of 8 percent to account for higher labor costs.

Unfortunately for automakers such as Ford, building a auto in the easier said than done.

Ford, however, has no plans to move production to the United States. While Ford might choose not to build the Focus in China, it does have a multiple number of plants in other countries it can choose to build the small hatchback in. The higher expense of US labor would likely boost the price of Apple products by 20 percent, reported, citing Bank of America Merrill Lynch.

In August, China unveiled a proposed list of retaliatory tariffs on $60 billion of USA goods ranging from liquefied natural gas to some types of aircraft, should Washington activate the tariffs on its $200 billion list.

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