Ford (NYSE: F)announcedon Thursday that it will not be raising the prices of imported Ford and Lincoln, Ford’s luxury brand, vehicles in China, absorbing the cost of the tariff placed on U.S. vehicles that goes into effect on Friday. The auto manufacturer said in a statement that “it has no current plans to increase the manufacturer’s suggested retail price (MSRP) on its import line-up in China.”
Ford is currently the first auto manufacturer to address pricing concerns due to the new retaliatory tariffs affecting an estimated USD 34 Billion of U.S. products imposed by China.
Last year, Ford imported close to 80,000 vehicles to China, with 54,124 of them being upper-end Lincoln vehicles, up 66% form 2016. All Lincoln vehicles sold in China are imported from North America. Ford encouraged the United States and China to resolve their dispute, saying it would “monitor the situation as it evolves”.
China is GM’s largest market. A spokesperson for GM said virtually all of its vehicles and parts are made in China aside from a miniscule number of Chevrolet Camaro cars. The Company is currently undergoing a sales slump in China caused by a lack of new models in its product lineup. GM auto Sales fell by 6% last year while vehicle sales increased 3% in China.
Ford and Lincoln lowered prices on import models in May after China announced tariff cuts for automobiles and car parts that became effective July 1.
Other companies that import to China include BMW, Daimler’s Mercedes, and Tesla.