Despite Trump tweet, Ford says it won’t make hatchback in US

Ford Focus on display in China

"This is just the beginning". 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.

The Focus Active was set to be the first Chinese-made Ford offered in the USA, while General Motors now imports the Buick Envision SUV and Cadillac CT6 Plug-In Hybrid.

But in a statement, Ford said it would "not be profitable to build the Focus Active in the US", given forecast yearly sales below 50,000. Start building new plants now. Earlier this year Ford cancelled all its smaller cars with the exception of the Mustang and the Focus Active. In May, it stopped making Focus sedans at a plant in Wayne, Michigan.

Chien Bor-yi, an analyst at Taipei-based Cathay Futures Consultant, said Apple's component supply chain in Taiwan would take a major hit if the United States increased tariffs on Chinese imported products.

However, a Ford spokesman Mike Levine indicated that there isn't a good a business case to build the low-margin, niche model in the U.S.

The tariffs changed everything. China is retaliating with its own tariffs on U.S. products.

The United States on July 6 began imposing a 25 per cent tax on $34 billion (U.S.) in Chinese imports, including motor vehicles. These tariffs have since been extended to an additional $16 billion in Chinese goods and in the near future, will be applied to another $200 billion in goods.

The tariffs are top of mind for Apple chief executive Tim Cook, who has personally lobbied Trump for months on issues of taxes and trade, even dining with the president and first lady Melania Trump at Trump National Golf Course in Bedminster, New Jersey, last month.

The world's two biggest economies are clashing over USA allegations that China deploys predatory tactics - including outright cybertheft - to acquire technology from US companies and challenge American technological dominance.

Related:

Comments

Latest news

Trump warns of 'devastating' taxes on Canadian cars
As the process grinds on, some in Washington insist Trump can not pull out of NAFTA without the approval of Congress . For all of Trump's bluster on trade NAFTA there are certain fundamental truths that not even Donald Trump can change.

Anonymous official cites Trump amorality in NY Times op-ed
And individuals who suffered under Obamacare's high health insurance premiums now have several more affordable options. Of course, Woodward never spoke to Trump in advance about what is contained in the book.

Trump Tells Apple to Make Products in USA to Avoid China Tariffs
He pointed to the latest fall in China's currency, the yuan, which is now down nearly 9 percent versus the dollar since April. Asian shares started the week in the red on Monday, faltering for the eighth straight day while the dollar climbed as U.S.

Memorable marathon opener for Dolphins against Titans
Lightning forced a halt again midway through the third quarter, and the second stoppage lasted just over two hours. Lewan was removed from the game following the play. "It's a lot of fun to play with them".

Aaron Rodgers' comeback adds another chapter to book of legend
Jordan Howard had five receptions at five yards per reception. "But we're coming together as a team, which is nice to see". Khalil Mack was on fire, the offense was moving at will and went into the half with a 17-0 lead.

Other news