Ford Shifts Lincoln Production to U.S. Amid 52.5% China Tariff

Ford Motor Co. announced that its Lincoln brand will move production of vehicles currently imported from China to U.S. plants beginning in 2030. The decision follows the 52.5 percent tariff imposed on the Lincoln Nautilus, Ford’s primary China-built model. Ford CEO Jim Farley said the tariff “was the driving factor” for the shift, outweighing other policy considerations.

So The Tariffs Are Working, Ford Is Bringing Lincoln Production Back To The U.S., And Tariffs Are Forcing Billion Dollar Companies To Stop Sending Our Jobs Overseas Lutnick says auto tariffs drive jobs; Ford shifts Lincoln production to US CNBC

The move is part of a broader reassessment by Detroit automakers of their China exposure. Chevrolet has already reduced its China footprint, and General Motors confirmed it will relocate Buick Envision production out of China. Industry analysts note that such retreats are prompted by the combined pressure of tariffs and competitive pricing challenges in the Chinese market.

So The Tariffs Are Working, Ford Is Bringing Lincoln Production Back To The U.S., And Tariffs Are Forcing Billion Dollar Companies To Stop Sending Our Jobs Overseas

• Lincoln sold 106,000 vehicles in the United States last year; the Nautilus accounted for ?34,000 of those sales.

So The Tariffs Are Working, Ford Is Bringing Lincoln Production Back To The U.S., And Tariffs Are Forcing Billion Dollar Companies To Stop Sending Our Jobs Overseas

• Ford estimates the tariff on imported parts will cost the company about $2 billion this year.

So The Tariffs Are Working, Ford Is Bringing Lincoln Production Back To The U.S., And Tariffs Are Forcing Billion Dollar Companies To Stop Sending Our Jobs Overseas

• The 52.5 percent tariff on the Nautilus represents a “not a rounding error” cost driver, according to Ford’s internal calculations.

So The Tariffs Are Working, Ford Is Bringing Lincoln Production Back To The U.S., And Tariffs Are Forcing Billion Dollar Companies To Stop Sending Our Jobs Overseas

• Howard Lutnick, U.S. Commerce Secretary, said Section 232 auto tariffs are “winning the day” by incentivizing automakers to shift production to U.S. soil, citing Ford’s Lincoln move as evidence of domestic manufacturing growth.

Lutnick says auto tariffs drive jobs; Ford shifts Lincoln production to US

• Ford’s corporate website reiterated that Lincoln is “a quintessentially American brand” and that building in America aligns with the company’s belief in the United States.

So The Tariffs Are Working, Ford Is Bringing Lincoln Production Back To The U.S., And Tariffs Are Forcing Billion Dollar Companies To Stop Sending Our Jobs Overseas

The relocation illustrates how tariff policy can reshape long-term capital allocation for major automakers, potentially preserving jobs in regions that have suffered manufacturing losses. If the shift succeeds, it may serve as a case study for the effectiveness of Section 232 tariffs in protecting domestic industry, while also highlighting the trade-off of higher costs for consumers and possible export challenges.

Lutnick says auto tariffs drive jobs; Ford shifts Lincoln production to US

• “Five years ago, China was primarily where global companies went to sell. Today, in certain sectors, it is where they go to source capability,” — Kitty Fok, managing director at IDC China

CNBC

• “China's technological rise is shifting from low-cost manufacturing to scale, supply-chain depth, and speed of innovation,” — Soumen Mandal, principal analyst at Counterpoint Research

CNBC