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United States President earlier suggested Apple to quit producing its products in China. He has afresh suggestion for Ford Motor too. He wants the auto maker to manufacture its small cars in the country and stop importing from Chinese companies.
Last month Ford said it has overturned the plan of importing its roomy hatchback Focus Active as Trump has threatened to impose tariffs on vehicles made in China. This would hike the costs of production and to hit the profit targets.
Ford’s decision meanwhile has been hailed by the president through a tweet on Sunday.
Trump’s Twitter post read, “Ford has abruptly killed a plan to sell a Chinese-made small vehicle in the U.S. because of the prospect of higher U.S. tariffs… This is just the beginning. This car can now be BUILT IN THE U.S.A. and Ford will pay no tariffs!”
Ford responded to the president’s tweet saying the model was not suited for domestic production and manufacturing in the U.S. would not be profitable for the company as the segment is competitive and expected annual sales volume is less than 50,000 units.
The company added that it is expanding the lineup in the U.S. by adding electric and hybrid models, sport utility vehicles and trucks.
Last week Apple said the tariffs could slow economic growth in the United States.
In a filing with the Commerce Department the iPhone maker added, “Because all tariffs ultimately show up as a tax on U.S. consumers, they will increase the cost of Apple products that our customers have come to rely on in their daily lives.”