Asian shares on slippery slope as Trump ups ante in trade war

Share

Ford responded the same day in a statement to The Detroit News that it won't build the Focus Active in the U.S.as the expected yearly sales of less than 50,000 would make the project unprofitable.

'It would not be profitable to build the Focus Active in the US given an expected annual sales volume of fewer than 50,000 units and its competitive segment, ' Ford said.

Ford didn't move production of the Focus to China by accident; it did so because the USA market has shifted away from smaller vehicles toward SUVs, which has made production of the Focus in the US -a relatively expensive location-an illogical choice.

Kristin Dziczek of the Center of Automotive Research says there's simply no motivation for Ford to build the Focus Active in the U.S now.

Earlier this week, Apple said in a regulatory filing that the president's proposed $200 billion in fresh tariffs on China would cover "a wide range of Apple products", from its Mac Mini computer to cables, chargers and laptop cases.

Trump hit back tweeting: "This means that Apple prices may increase because of the massive Tariffs we may be imposing on China - but there is an easy solution where there would be ZERO tax, and indeed a tax incentive". Yesterday, as the Inquisitr reported, Trump told Apple that it should make their products in the United States, and therefore bypass his tariffs. "Start building new plants now", Trump tweeted. "Exciting! #MAGA", reads Trump's tweet. The company had plans to begin making the vehicle in China in the latter half of 2019 and exporting them to the USA market.

"Our concern with these tariffs is that the USA will be hardest hit, and that will result in lower U.S. growth and competitiveness and higher prices for United States consumers", Apple said in its letter.

In April, Ford announced plans to stop making cars in the United States - except for the iconic Mustang - and to focus on more profitable SUVs.

The $200 billion of Chinese goods on the USA list includes some consumer products such as cameras and recording devices, luggage, handbags, tires and vacuum cleaners, with additional tariffs ranging from 10 to 25 percent.

Share