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
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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