President Trump said Sunday that Ford’s decision to scrap its previous plans to sell a Chinese-made vehicle in the U.S. because of his administration’s tariffs was “just the beginning.”
” ‘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. This is just the beginning,” Trump tweeted Sunday, apparently quoting a CNBC article.
“This car can now be BUILT IN THE U.S.A. and Ford will pay no tariffs!” he added.{mosads}
In a subsequent tweet, the president also ripped U.S. trade agreements with China.
“If the U.S. sells a car into China, there is a tax of 25%. If China sells a car into the U.S., there is a tax of 2%. Does anybody think that is FAIR?” he tweeted. “The days of the U.S. being ripped-off by other nations is OVER!”
Ford canceled its plans late last month to sell its new Chinese-built Focus Active in the U.S. next year. The company cited Trump’s escalating trade war for its decision.
“Our viewpoint on Focus Active was that, given the tariffs, obviously our costs would be substantially higher,” Kumar Galhotra, president of the car company’s North America division, said in a conference call at the time.
Trump on Friday vowed to slap an additional $267 billion in tariffs on Chinese imports in addition to the $200 billion he has already promised.
Tariffs, as a result, would cover $467 billion in Chinese imports on top of the $50 billion already in place, for a total of $517 billion.
China has continued to hit back with its own tariffs, matching U.S. moves. The country has not yet responded to Trump’s latest threat.
Most business groups agree that past trade deals with China have privileged China unfairly over the U.S. Still, many have also expressed concerns about implementing such tariffs for fear of harming U.S. economic growth.