Ford Motor Co. is unlikely to be the last to say forget it to a vehicle that doesn’t make financial sense for the U.S. market anymore due to Donald Trump’s trade wars.
The second-largest U.S. carmaker has pulled the plug on plans to import a new small crossover from China called the Focus Active. Trump administration started imposing an additional 25 percent tariff on vehicles imported from the country he’s portrayed as America’s biggest trading foe in July
The move will make little difference for Ford’s sales or profits, as the company was expecting to sell fewer than 50,000 Focus Actives in the U.S. a year. But the crossover’s demise looms larger as a potential first of several autos to be aborted as a result of duties that render them unaffordable for consumers or unprofitable for manufacturers.
A major risk looming for the industry lies in the investigation that the U.S. Commerce Department started in May of whether imported cars and components pose a threat to national security.