Trump says the rates mean that Ford can make a new model at home. Ford says it's not right.



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President Trump suggested Sunday that Ford Motor could start making a small car in the United States instead of importing it from China. But the automaker quickly issued a statement saying it did not have such plans.

In August, Ford announced that it had killed a plan to import the Focus Active, a spacious saloon, claiming that the tariffs that Mr. Trump threatened to impose on vehicles built in China would increase costs too much for the company to reach its profit objectives.

Trump hailed the decision in a Twitter message posted Sunday, apparently after seeing a report on Focus Active on television. "Ford has brutally killed a plan to sell a small Chinese-made vehicle in the United States because of the prospect of an increase in US tariffs." CNBC. This is only the beginning. This car can now be BUILT IN USA and Ford will not pay any fare!

Ford has announced plans to remove Focus Active from the US market on Aug. 31. After Trump's tweet, the company responded with a statement reiterating its reasoning: the niche model was not suitable for domestic production. "It would not be profitable to build the Focus Active in the United States, given an expected annual sales volume of less than 50,000 units and its competitive segment," the company said.

Ford added that it is expanding its range in the US by adding trucks, sport utility vehicles, hybrid vehicles and electric models, as it aims to increase its profit margin in North America to 10%.

Trump's Twitter post on Focus Active was his second in two days for US companies whose products are subject to tariffs because they are made in China. Saturday, he called Apple to make iPhones in the United States if they do not want to pay import duties.

In a document filed with the Commerce Department last week, Apple voiced its opposition to tariffs and said they could slow economic growth in the United States.

"As all tariffs turn out to be a tax on US consumers, they will increase the cost of Apple products that our customers now rely on," the company said.

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