Despite Mr. Trump’s continuous boasting that the economy is the “best ever” and telling Americans that manufacturing is booming, the facts tell another tale. According to Boston.com:
‘The unemployment rate has fallen as far as it has partly because many Americans have given up looking for work.’
On Friday, there was more evidence that Trump is not helping manufacturing in any way, shape, or form. Ford announced they are canceling their plan to import the Focus crossover model from China, as Trump’s escalating trade war is making the vehicle much less profitable.
According to Bloomberg:
‘Trump’s move to slap China-built autos with an additional 25 percent levy in July undermined the profitability of the Focus Active that Ford planned to start shipping into the U.S. about a year from now, said Kumar Galhotra, president of North American operations. The company decided it wasn’t worth investing more money in a vehicle that would have had fewer than 50,000 unit sales a year in the U.S.’
Kumar Galhotra, president of Ford’s North American operations said:
‘Our viewpoint on Focus Active was that, given the tariffs, obviously our costs would be substantially higher. Our resources could be better deployed.’
Ford sells more than 2.5 million vehicles a year so canceling the importing of the Focus Active will not be largely significant to the motor company’s business. However, this vehicle represents what could be the first of several vehicles that don’t make the U.S. lineup if Trump’s trade war continues to escalate as it has not only with China, but with Europe and Canada as well.
‘For months, Trump’s Commerce Department has been investigating whether imported cars and components pose a threat to U.S. national security, and the administration is said to be considering tariffs of as much as 25 percent.
‘Imposing those duties would render many models more expensive, and some may even end up dropping from showrooms, said Kristin Dziczek, vice president of industry, labor and economics at the Center for Automotive Research.’
‘The Trump Administration seems very intent on imposing the 232 tariffs. That would mean that a lot of models would be withdrawn from the U.S. market.’
From the sounds of this, it could create a serious spiral effect that will eventually be very detrimental to the economy and to workers.
Here’s a snippet which shows the new model:
Featured image is a screenshot from YouTube