Ford’s top boss just dropped a bombshell about the real toll of the US-China trade war—and what it means for American drivers and car prices.
Supply Chain Chaos: “It’s Hand-to-Mouth Right Now”
Ford CEO Jim Farley, 63, admitted Friday that the company has been forced to shut down factories in the US. The reason? A supply crunch on crucial rare earth minerals—materials used in everything from seat belts to speakers—that’s directly linked to tense trade relations with China.
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90% of US rare earth supplies come from China
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New tariffs of up to 125% have thrown the auto industry into turmoil
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Farley says: “It’s day to day. We have had to shut down factories. It’s hand-to-mouth right now.”
Farley did not specify which plants were impacted or how long the closures lasted, but the admission sent shockwaves through the American auto sector.
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Trump Tariffs “Blow a Hole” in the Industry
The trouble began with a tit-for-tat trade war between former President Trump and China, with both sides ramping up tariffs:
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Trump’s 10% global tariffs worried Farley, who said it would “blow a hole” in the US auto sector
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Ford has already maxed out its US production and relies heavily on imports
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China retaliated with a whopping 125% tariff on American imports
Farley explained, “We don’t have a lot of excess capacity. We’re the largest US producer, but a lot of people don’t realize Ford exports a lot of cars outside the US.”
Signs of Hope: Deal in Sight?
After months of escalating tensions, Farley says there’s finally light at the end of the tunnel. A new trade agreement is on the table, and President Trump recently declared the trade war “over,” touting a “excellent” relationship with China’s President Xi Jinping.
Farley says Ford is now working closely with China’s ministry of commerce to get trade plans approved “one at a time.”
Price Surge: What Everyday Items Will Be Hit?
Americans should brace for price hikes on a range of products thanks to the tariffs—including:
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Coffee, tea, bananas
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Foreign-made cars and sneakers
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Furniture, home goods, clothing
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Pharmaceuticals and video games
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Washers, dryers, toys, avocados
The American banana giant Chiquita has announced that its entire staff has been laid off in this country
Scientists have just discovered the largest deposit of white hydrogen in an unexpected location.
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Even housing materials
More Trouble for Ford
Factory shutdowns aren’t the only storm Ford is weathering:
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The company recently recalled over 1 million vehicles due to a rearview camera glitch
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A popular Ford dealership was shuttered to make way for a nationwide auto shop chain
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Yet, car lovers can still find good news—like the story of a rare 1969 Ford muscle car, rescued and restored after 40 years hidden in a basement