RARE ISSUE Ford is forced to immediately shut down factories and halt car production as CEO admits ‘day to day’ struggle for brand

Ford CEO Reveals Factory Shutdowns as US-China Trade War Hits American Car Industry Hard

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.

  • 90% of US rare earth supplies come from China

  • New tariffs of up to 125% have thrown the auto industry into turmoil

  • 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:

  • Trump’s 10% global tariffs worried Farley, who said it would “blow a hole” in the US auto sector

  • Ford has already maxed out its US production and relies heavily on imports

  • 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:

More Trouble for Ford

Factory shutdowns aren’t the only storm Ford is weathering:

  • The company recently recalled over 1 million vehicles due to a rearview camera glitch

  • A popular Ford dealership was shuttered to make way for a nationwide auto shop chain

  • 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