President Donald Trump is using the tariff as a way to get better deals for American producers. It is a bumpy process, but the corporations moving jobs overseas are finally receiving some push-back against their harmful practices. One multinational corporation – the Ford Motor Company – moved production out of the United States and is suffering as a result.
In 2017, Ford chose to build their new plant to build Ford Focus automobiles in China against the wishes of President Trump. Because of their foolhardy decision, new Ford Focus automobiles will no longer be sold in the United States. This is effective immediately and will not change whether or not Trump’s tariffs are lifted.
Kumar Galhotra, Ford’s president of North America, claims that Trump’s 25 percent tariff on cars made in China has made a “very difficult business case for [Ford], so we’re choosing to deploy these resources elsewhere.”
The company chose to make this move because they believed it would save them approximately $1 billion dollars. Now after being locked out of the US market due to their poor calculations, they will be losing profits that could dwarf those savings.
Trump criticized Ford and their business practices (along with other auto companies) ever since he was on the campaign trail before he became President.
“It used to be cars were made in Flint and you couldn’t drink the water in Mexico. Now cars are made in Mexico, and you can’t drink the water in Flint, but we’re going to turn this around,” Trump said in a popular campaign talking point that resonated in the Rust Belt where he is so strong.
Trump has given admiration to Ford after they announced they were keeping certain plants in the United States, but he will not hesitate to put the health of America before the health of profit-driven transnational corporations.