Ford’s decision to phase out China-built Lincoln vehicles for the US market is another sign that tariffs and geopolitical tensions are reshaping the global manufacturing and automotive map.
Ford plans to increase US production of Lincoln vehicles from 2030 and eventually stop importing China-built models for American customers. The move will affect the Lincoln Nautilus, which is currently assembled in China by Changan Ford, Ford’s 50-50 joint venture with Chinese automaker Changan Automobile. The immediate reason is cost. China-built Lincoln vehicles entering the US currently face a tariff rate of 52.5%. For Ford, that significantly reduces the profit it can make on each vehicle.
Ford CEO Jim Farley has been clear that US trade policy influenced the decision. The company is effectively responding to a new reality: manufacturing in China may still be efficient, but producing there for the US market can now carry a major political and financial penalty.
This is where the story becomes bigger than Ford. For decades, global manufacturers built their supply chains around efficiency. Companies could design a product in one country, source components from several others, manufacture it where costs were competitive and sell it around the world.
Today, under the Trump administration, that model is being challenged. The US-China trade relationship has increasingly turned manufacturing into a strategic issue. Washington is using tariffs, investment restrictions and technology controls to reduce dependence on China in industries considered important to national security. The US has also introduced restrictions affecting connected-vehicle technology linked to China.
Ford is therefore not simply moving production. It is adjusting its supply chain to fit a more fragmented global economy. There are signs this shift is spreading across the automotive industry. General Motors is reportedly planning to end Chevrolet sales in China, while American automakers are facing growing competition from Chinese manufacturers such as BYD and Geely.
Reshoring however also comes with costs. Moving production back to the US can create jobs and strengthen domestic manufacturing, but US production is generally more expensive, and companies may eventually pass some of those costs to consumers. Ford will also have to invest in factories, equipment and supply chains capable of producing vehicles that were previously manufactured through an established Chinese production network.
The wider lesson is that tariffs have not simply made imported goods more expensive, they’ve now changed where companies decide to build factories in the first place, which has major implications for developing economies.
Countries across Africa have spent years trying to attract manufacturers looking for lower production costs and access to growing markets. But if geopolitical tensions push companies to prioritise political alignment, supply-chain security and proximity to major markets over production costs alone, the competition for investment changes.
For Africa, this could create both risks and opportunities. Countries with strong industrial policies, reliable electricity, efficient ports, trade agreements and access to regional markets could benefit as companies diversify their supply chains. The African Continental Free Trade Area could become increasingly important by offering manufacturers access to a much larger regional consumer market.
But Africa cannot assume that companies leaving China will automatically come to the continent. Ford’s decision shows that investment follows more than cheap labour. Infrastructure, policy certainty, market access, skills and political stability matter just as much.
Written by:
*Chloe Maluleke
Associate at BRICS+ Consulting Group
Russia & Middle East Specialist
**The Views expressed do not necessarily reflect the views of Independent Media or IOL.
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