Donald Trump is having problems with cause, effect, and how corporations operate. Again. This time, the issue is Ford’s decision not to market the Chinese-manufactured Focus Active in the United States because of tariffs. Says Trump: “This is just the beginning. This car can now be BUILT IN THE U.S.A. and Ford will pay no tariffs!”
Ford: Uh, no, that’s not going to happen. Or, to be specific, “It would not be profitable to build the Focus Active in the U.S. given an expected annual sales volume of fewer than 50,000 units and its competitive segment.”
The funny thing is, the car could have been built in the U.S. all along and Ford would have paid no tariffs. They elected not to do so and they’re still not doing it—they just won’t sell it here at all. Car companies should come under pressure to build more of their product in the U.S., mind you, and to market smaller cars in the U.S. as opposed to the SUVs and trucks they push so hard here. But once again, Mr. Big Businessman Trump does not get how these companies actually work, which is one of the many reasons his trade war isn’t going to work out how he thinks.