Ford Motor Company will not follow through on a plan to sell a Chinese-made Ford Focus vehicle in the United States, citing increased pressure from the Trump administration’s tariff war with China.
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The automaker announced the decision on Friday, saying that the previously imposed tariffs on Chinese products – and the prospect of more in the future – are likely to hit the company’s bottom line.
“We made a business decision to stop development of the Focus Active crossover for U.S. customers due to the negative financial impact of new tariffs on vehicles imported from China,” a spokesperson for the company told FOX Business.
The Trump administration could implement another round of tariffs on $200 billion worth of Chinese goods any time after the public comment period ends next week. A 25 percent levy on auto imports went into effect in July.
Shares of the Michigan-based automaker fell during Friday’s trading session.
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The vehicle, known as the Ford Focus Active, is a crossover-sized four-door hatchback.
The car was expected to be available in the U.S. in the second half of next year. Ford said abandoning that plan will not hurt sales or cost jobs, according to Reuters.
Friday’s decision follows an announcement earlier this year in which the company said it would stop selling sedans in North America to focus on SUVs and trucks in order to deal with declining demand for small cars.