In a groundbreaking move, Ford Motor Company has announced it will suspend shipments of its popular SUVs, trucks, and sports cars to China. This decision, revealed on April 18, comes as the automaker grapples with retaliatory tariffs soaring as high as 150% on vehicles.

"We have adjusted our exports from the US to China in light of the current tariffs," a Ford representative stated. The halt affects high-demand models, including the F-150 Raptor, Mustangs, and Bronco SUVs produced in Michigan, as well as Lincoln Navigators manufactured in Kentucky.

Ford's operations in China, which include several joint ventures producing vehicles under its Ford and Lincoln brands, are complicating matters further. With US automakers racing to adapt to President Trump’s unpredictable tariffs, Ford's leadership realizes long-term profitability could be at stake.

Despite the export freeze, Ford plans to continue sending US-built engines and transmissions to China. Notably, the Lincoln Nautilus, produced in China, will still be shipped, even with heavy tariffs looming.

Fortunately for Ford, about 80% of the vehicles it sells domestically are manufactured in the US, providing it with a buffer against these escalating tariffs. However, internal memos are indicating potential price hikes for new vehicles if the tariffs persist.

Recent analysis from the Center for Automotive Research suggests that Trump's 25% tariffs on automotive imports could inflate costs for manufacturers by a staggering $108 billion by 2025. As Ford continues to navigate these tumultuous waters, it sold 442,000 vehicles in China in 2024 – a mere 1.6% market share.

Despite these challenges, Ford's Chinese ventures yielded impressive operating profits of around $900 million, as quoted by Vice Chairman John Lawler at a recent financial conference.

In the midst of this turmoil, Trump hinted earlier this week about possibly modifying the auto-related tariffs, raising questions about potential exemptions that could alter the landscape for American automakers.