Ford tells Trump why it won't make China-built vehicle in US

President Donald Trump wants Apple to make iPhones in the US instead of China

The statement came after Trump tweeted about an article from August 31, when Ford announced that it was canceling plans to make the Focus Active, a compact crossover, in China and ship them to the United States.

Trump hit back tweeting: "This means that Apple prices may increase because of the massive Tariffs we may be imposing on China - but there is an easy solution where there would be ZERO tax, and indeed a tax incentive".

The tariffs, ranging from 5 percent to 25 percent, would apply to 5,207 products, and US actions will determine whether China adopts the additional duties, Beijing said at the time.

Ford won't shift production of the Focus Active from China to the United States, dashing the hopes of President Donald Trump. That is why companies like Ford cannot sell their vehicles, which they make overseas, in the U.S.

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. In a letter to U.S. Trade Representative Robert Lighthizer the company laid out its position that the overall effects of the tariffs will be harmful, even if some of the outside analysis - that the impact will be light overall - turns out to be true.

Mr. Trump took to Twitter Sunday to declare victory and write: "This is just the beginning".

It's not just money that's stopping Apple from building factories in the US
SIMON MAUDE STUFF It's not just money that's stopping Apple from building factories in the US

"Without the tariffs, the business case was pretty solid for that model in the USA market", he said. But disagreements between the two major economic powers run deeper than just the trade balance and tensions remain over limits on USA firms' access to Chinese markets, intellectual property protection, technology transfers, and investment. The company is making iPhone display glass in Kentucky, and is setting up new plants in other areas. The profit margins were simply too small to be worth it.

The higher expense of US labor would likely boost the price of Apple products by 20 percent, CNBC.com reported, citing Bank of America Merrill Lynch.

The tariffs changed everything.

Beijing and Washington have imposed 25 percent import duties on $50 billion of each other's goods in a battle over technology policy.

China has threatened retaliation, which could include action against USA companies operating there.

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