Ford Promises To Stop Producing Lincolns In China

Ford plans to move production of some Lincoln models out of China and into the United States starting in 2030, CEO Jim Farley told Reuters on Wednesday. The headline vehicle here is the Lincoln Nautilus, currently built in China and currently subject to a U.S. import tariff of 52.5%, a figure Ford confirmed.

Farley framed the move as painful but necessary. "We made this decision as soon as the policy of the administration was set," he told Reuters, adding, "We knew exactly what they wanted to do, and we knew exactly what it meant for Ford."

Tariff Math, Not Patriotism

The official language is all about strengthening the domestic manufacturing base. The actual math is simpler: a 52.5% duty on your main China import is the kind of number that makes stateside assembly look like a bargain. Automakers are profit-seeking companies, and a tariff that steep turns "difficult but necessary" into a foregone conclusion.

Worth noting is the venue for the announcement. Farley delivered these remarks in a joint interview alongside U.S. Commerce Secretary Howard Lutnick. Draw your own conclusions about how much of this is sober supply-chain planning versus a photo op for the administration.

Mexico Wants a Better Deal, Too

Ford isn't the only one recalculating around tariffs. Mexico is pushing the U.S. to lower duties on North American automobiles as part of talks to rework the USMCA, according to people familiar with the matter cited by the Wall Street Journal. It's a counterproposal to the Trump administration's push to require more American-made parts in vehicles.

The administration currently charges a 25% tariff on non-U.S. content in cars from Canada and Mexico. Under the Mexican plan, tariffs would apply only to the value of components produced outside North America, letting parts from Mexico and Canada qualify for duty-free treatment, per people with knowledge of the negotiations.

There's an obvious wrinkle: this same cast of characters negotiated a North American trade deal during Trump's first term, and that deal has already been torn up. Nothing guarantees the next one lasts any longer.

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