Ford rules out building Focus Active in US

Workers pack tinned peaches for export at a fruits processor in Huaibei city in central China's Anhui province. — AP

Workers pack tinned peaches for export at a fruits processor in Huaibei city in central China's Anhui province. — AP

According to CNBC, BofA noted that a 25 percent tariff "could be materially demand destructive" and estimates that about a third of the $26 billion it earns from those products comes from the United States.

He went on to speculate that, "beyond 2 years, these tariffs will go away".

At 07:14 GMT, the yuan was quoted at 6.8601 per US dollar, 0.16 percent weaker than the previous close of 6.8492.

The White House has accused China of stealing USA intellectual property and forcing American companies to share their technology with Chinese companies. Apple chief executive officer Tim Cook earlier this year told Trump tariffs "were not the right approach".

President Donald Trump on Sunday suggested via Twitter that American automaker Ford could begin making its Focus model in the USA, and therefore circumvent his tariffs.

The Trump administration has imposed tariffs on $50 billion worth of Chinese goods, including some automobiles, in a move Trump has touted as necessary to punish Beijing for what he says are its unfair trade practices and intellectual property theft.

Former trade officials have decried US President Donald Trump's understanding of global trade and tariffs after his remarks on Sunday that Ford's decision not to sell an upcoming vehicle model in the United States was a triumph for the country.

Apple is anxious that a new round of Trump's tariffs against China, on a further $267 billion of goods this time, will result in a price hike of its products.

Technically, that's true. Ford can build the Focus Active at a domestic plant, just like it can give the next Ford Mustang Shelby GT500 a manual transmission. A recent study by Bank of America found that iPhone prices would rise 20% if they were manufactured 100% in the U.S.

Ford spokesman Michael Levine said the Focus Active is built in Europe.

That means Ford simply will not sell the vehicle in the US.

The Focus Active was meant to take the place of the Ford Focus in the USA because Ford is phasing out the entry-level vehicle as it shifts its production to pickups and SUVs. "First, given the balance of Apple's economic footprint, the burden of the proposed tariffs will fall much more heavily on the United States than on China".

The Focus Active may be the first auto officially killed by the administration's tariffs, but it likely won't be the last.

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