‘Difficult but necessary’: Ford to shift Lincoln production from China to US as trade tensions deepen

Ford Motor is moving to reduce its reliance on China for vehicles sold in the US, with plans to shift production of some Lincoln models from China to the US from 2030 as the US and China remain locked in a widening trade fight.

Ford CEO Jim Farley told Reuters that the decision was “difficult but necessary” to strengthen the automaker’s US manufacturing base. The company has not disclosed where the US-bound Lincoln models will be produced.

The move comes as vehicles imported from China face steep duties in the US. Ford confirmed that the tariff on the Lincoln Nautilus, its main vehicle imported from China, is currently 52.5 per cent.

“We made this decision as soon as the policy of the administration was set,” Farley told Reuters, referring to the Trump administration’s tariff policies.

“We knew exactly what they wanted to do, and we knew exactly what it meant for Ford,” he told Reuters in a joint interview with US Commerce Secretary Howard Lutnick.

Tariffs push Ford towards US production

Ford’s decision underscores how the escalating US-China trade dispute is increasingly influencing global manufacturing and supply chains.

Farley said tariffs were the main factor behind the production shift, although restrictions on Chinese technology also played a role.

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The US has introduced its Connected Vehicle Rule, which restricts certain Chinese technology and hardware in vehicles sold in the country. The measure is part of Washington’s broader effort to limit potential national-security risks linked to Chinese technology.

Ford was among several automakers that had sought authorisation from the US Commerce Department to continue selling vehicles potentially affected by the rule.

A Ford spokesperson said the company had since determined, following discussions with the Commerce Department, that the Lincoln Nautilus no longer needed such authorisation to be sold in the US.

Ford had previously said that the Nautilus’ software was developed in the US but installed in the vehicle in China. That had raised questions over whether the vehicle required government approval to remain on sale in America.

Ford sold about 34,000 Nautilus vehicles in the US last year.

Ford joins broader US manufacturing push

The Lincoln production shift comes as the Trump administration pushes companies to manufacture more goods in the US and reduce dependence on overseas supply chains.

US Commerce Secretary Howard Lutnick said Ford stood to benefit from its decision to expand domestic manufacturing.

“Ford’s got an edge. Domestic manufacturing has an edge,” Lutnick told Reuters.

Ford’s decision also follows a similar move by rival General Motors. GM has announced plans to shift production of its Buick Envision from China to the US starting in 2028.

The moves indicate how tariffs and trade restrictions are beginning to influence where major automakers manufacture vehicles for the US market.

For companies that have built supply chains around China, shifting production to the US can increase manufacturing costs. But it can also reduce exposure to tariffs and regulatory uncertainty as Washington seeks to limit Chinese economic and technological influence.

US-China tensions reshape auto industry

The auto sector has become an important part of the broader US-China economic confrontation.

Washington has increasingly targeted Chinese technology and manufacturing through tariffs, investment restrictions and measures aimed at limiting Chinese components and software in strategically important industries.

US lawmakers are also considering tougher restrictions on companies with Chinese ownership.

A proposal approved by the US Senate Commerce Committee in July would bar companies that are more than 15 per cent owned by Chinese entities from selling vehicles in the US.

If implemented, the measure could affect major international automakers, including Mercedes-Benz.

The proposed restrictions reflect growing concerns in Washington about Chinese ownership and technology in the US automotive market.

For automakers, the result is an increasingly complex operating environment in which production decisions are shaped not only by costs and consumer demand, but also by tariffs, technology restrictions and national-security concerns.

Lincoln already has US production base

Ford’s Lincoln brand already has a substantial manufacturing footprint in the US.

The company assembles the Lincoln Navigator at a plant in Louisville, Kentucky, and the Lincoln Aviator at its Chicago Assembly Plant.

Both models are also exported to markets including Canada, Mexico and the Middle East.

The planned shift of additional Lincoln production from China will therefore expand an existing US manufacturing base.

Ford has not said which Lincoln models will move or where they will be produced in the US.

The decision nevertheless marks another step in the restructuring of global auto supply chains as the US-China trade relationship becomes increasingly confrontational.

For Ford, moving production out of China could help insulate its US business from tariffs and regulatory restrictions. For Washington, the move fits a broader strategy of encouraging domestic manufacturing and reducing dependence on China for goods sold in the American market.

(With inputs from agencies.)