Ford Motor Company (NYSE:F) shares are trading lower on Monday amid reports indicating the company stopped exporting certain high-end vehicles to China due to tariffs.
What To Know: The automobile giant has stopped shipments of its F-150 Raptors, Mustangs, Michigan-built Bronco SUVs and Kentucky-made Lincoln Navigators to China, according to Reuters. The move comes as retaliatory tariffs under President Donald Trump's administration reach as high as 150% on some vehicles.
The tariffs are expected to raise prices and limit demand.
The stock may be trading lower following the announcement, as investors consider the potential impact on revenue from reduced China sales. While China sales represent a small slice of Ford's overall business, the exports have been consistently profitable.
Notably, Ford may be better positioned to manage tariffs than some competitors, as it builds about 80% of the vehicles it sells in the U.S. domestically. Still, the company is expected to raise prices.
See Also: Amazon Stock Downgraded, Price Target Slashed As Tariffs Create Uncertainty
F Price Action: At the time of writing, Ford shares are trading 2.75% lower at $9.36, according to data from Benzinga Pro.
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