Tariffs Update: Ford Stops China Exports, Volvo Layoffs, And More

With President Trump’s levying of tariffs on imported cars, developments are coming rapidly as automakers adjust to the shifting landscape. Some of the latest involve Ford ceasing China exports, Volvo announcing it will lay off workers, Kia forging ahead with a new model launch, and Mazda stopping exports to Canada.

Fake CGI new car model reveals are getting out of hand.

Ford has cut off the flow of luxury trucks, SUVs, and performance cars to China, which has increased tariffs on vehicles assembled in this country to a ridiculous 150 percent. Among the models which were being sent to Chinese consumers are the Raptor, Bronco, Mustang, and Lincoln Navigator.

Increasingly, Chinese consumers have been turning to domestic brands as the Communist Party has taken measures to encourage the patriotic act. In other words, Ford and other foreign automakers were already facing strong opposition, with some just pulling out of that market entirely long before Trump’s second term.

Here in the US, Volvo Group has announced it’s laying off 800 workers. While automakers have been leaning down for a while now, the Swedish company said the tariffs are the reason for the move. Employees being given the axe are at the Mack Trucks factory in Pennsylvania as well as Volvo facilities in Virginia and Maryland.

South Korean automakers seem poised to capitalize on the tariff situation, forging ahead instead of pulling back. Kia says it will release the 2026 EV4 all-electric sedan early next year, even though at the moment it would be facing a 25 percent tariff since it’s assembled in South Korea.

Do the Koreans think the tariff situation will soften or be over by then? Or do they have a plan to absorb the cost without passing it on to the consumer? Kia is keeping its deeper motivations secret, for now.

Finally, Mazda has said it will halt exports of US-assembled CX-50 compact crossovers to Canada starting May 12 in response to Canada imposing tariffs on cars made in this country. We guess Canadians will have to nurse along their older Mazdas or settle for a different model if the situation doesn’t shift for a while.

Changes in the industry from the tariffs will obviously keep coming for the foreseeable future.

Image via Ford