Ford Motor Co (F.N) said it has no plans for now to hike prices of imported Ford and Lincoln models in China, despite additional tariffs on U.S. vehicles due to be applied from Friday.
The U.S. carmaker, which has been facing sluggish sales in the world’s largest auto market, said in a statement on Thursday “it has no current plans to increase the manufacturer’s suggested retail price (MSRP) on its import line-up in China”.
Ford’s move, which would mean it taking a hit on margins on imported cars, makes it the first foreign automaker to address pricing issues ahead of the new tariffs that will affect around $34 billion of U.S. imports from soybeans and cars to lobsters.
Ford has much to lose if rising trade tensions between China and Trump escalate into a full-blown tariff war. Last year, it shipped about 80,000 vehicles to China from North America, more than half of them its upper-end Lincolns – including the Lincoln Continental sedan and the Lincoln MKX crossover SUV.
China, which just days ago cut tariffs on all imported automobiles, plans to slap an additional 25 percent levy on 545 American products, including U.S.-made cars, should the Trump administration go ahead with plans to implement tariffs on $34 billion of Chinese imports from July 6.