Blab Business
U.S. Transportation Secretary Urges Ford to Cut China Ties Amid Rising Trade Tensions
On September 8, 2026, the U.S. Department of Transportation published a letter from Secretary Sean P. Duffy addressed to Ford Motor Company's CEO, Jim Farley. Dated September 3, the missive urges Ford to curtail its ties with Chinese firms for national‑security reasons.
The letter singles out a handful of Ford’s recent collaborations. It points to the company’s licensed battery technology from Chinese maker CATL at Michigan’s BlueOval Battery Park, a joint venture that lets Geely assemble cars at Ford’s Valencia, Spain, facility, and discussions with BYD over hybrid parts. Duffy also cites a proposal Ford supposedly unveiled at the Detroit Auto Show that could pave the way for U.S.–Chinese joint ventures.
Ford answered on the same day, disputing the letter’s assertions. The automaker clarified that its CATL deal is a narrow technology‑licensing and services agreement, not a joint venture or foreign‑owned plant. It also refuted the claim that it floated a joint‑venture blueprint at the auto show. Ford highlighted its $3 billion commitment to the Michigan battery plant, which it says will add roughly 1,700 jobs, and noted that the White House lauded the facility as a benchmark for American manufacturing.
The spat unfolds amid a congressional drive to clamp down on Chinese cars in the U.S. market. Chinese imports already attract a 100 % tariff plus extra duties, and Commerce Department rules restrict sales of vehicles or parts linked to China or Russia on national‑security bases. Senators Elissa Slotkin and Bernie Moreno have filed the bipartisan Connected Vehicle Security Act of 2026, which would formalize those limits and bar Chinese vehicles from U.S. roads. The Senate Commerce Committee passed the bill unanimously in July.
Ford’s CEO Jim Farley has voiced support for the administration’s view. In a Fox & Friends interview referenced by Bloomberg, Farley declared, “We should not let them into our country. Manufacturing is the heart and soul of our country, and for us to lose that to those exports would be devastating.”
The letter and Ford’s counter‑statement come just weeks ahead of President Donald Trump’s meeting with Chinese President Xi Jinping in Washington, D.C., on September 24. The agenda is expected to include trade, artificial intelligence, and other economic topics.
Ford’s reply also affirms its backing of the Trump administration’s push to boost American innovation and manufacturing. It added that had Secretary Duffy contacted the company before the letter went public, Ford would have been open to providing more detail on its U.S. commitments.
The dispute underscores widening tensions between U.S. policymakers and a major automaker’s global supply‑chain approach. Ford insists its ties to Chinese firms are confined to technology licensing and the joint production of select models, yet the Department of Transportation’s letter signals a readiness to probe those connections on national‑security grounds.
With the U.S. and China gearing up for the summit, the Ford‑Duffy back‑and‑forth highlights the wider debate over how U.S. firms can stay competitive abroad while safeguarding domestic security. The results of the meeting and any ensuing policy moves are poised to shape Ford’s strategy and the automotive sector’s broader engagement with Chinese partners.
The situation remains fluid. Ford has yet to alter its China‑related agreements, and the Department of Transportation has issued no additional guidance. Investors and industry watchers will keep a close eye on developments in the coming weeks, especially as the U.S. government weighs tightening export controls and the automotive sector readies itself for the September 24 summit.
The letter singles out a handful of Ford’s recent collaborations. It points to the company’s licensed battery technology from Chinese maker CATL at Michigan’s BlueOval Battery Park, a joint venture that lets Geely assemble cars at Ford’s Valencia, Spain, facility, and discussions with BYD over hybrid parts. Duffy also cites a proposal Ford supposedly unveiled at the Detroit Auto Show that could pave the way for U.S.–Chinese joint ventures.
Ford answered on the same day, disputing the letter’s assertions. The automaker clarified that its CATL deal is a narrow technology‑licensing and services agreement, not a joint venture or foreign‑owned plant. It also refuted the claim that it floated a joint‑venture blueprint at the auto show. Ford highlighted its $3 billion commitment to the Michigan battery plant, which it says will add roughly 1,700 jobs, and noted that the White House lauded the facility as a benchmark for American manufacturing.
The spat unfolds amid a congressional drive to clamp down on Chinese cars in the U.S. market. Chinese imports already attract a 100 % tariff plus extra duties, and Commerce Department rules restrict sales of vehicles or parts linked to China or Russia on national‑security bases. Senators Elissa Slotkin and Bernie Moreno have filed the bipartisan Connected Vehicle Security Act of 2026, which would formalize those limits and bar Chinese vehicles from U.S. roads. The Senate Commerce Committee passed the bill unanimously in July.
Ford’s CEO Jim Farley has voiced support for the administration’s view. In a Fox & Friends interview referenced by Bloomberg, Farley declared, “We should not let them into our country. Manufacturing is the heart and soul of our country, and for us to lose that to those exports would be devastating.”
The letter and Ford’s counter‑statement come just weeks ahead of President Donald Trump’s meeting with Chinese President Xi Jinping in Washington, D.C., on September 24. The agenda is expected to include trade, artificial intelligence, and other economic topics.
Ford’s reply also affirms its backing of the Trump administration’s push to boost American innovation and manufacturing. It added that had Secretary Duffy contacted the company before the letter went public, Ford would have been open to providing more detail on its U.S. commitments.
The dispute underscores widening tensions between U.S. policymakers and a major automaker’s global supply‑chain approach. Ford insists its ties to Chinese firms are confined to technology licensing and the joint production of select models, yet the Department of Transportation’s letter signals a readiness to probe those connections on national‑security grounds.
With the U.S. and China gearing up for the summit, the Ford‑Duffy back‑and‑forth highlights the wider debate over how U.S. firms can stay competitive abroad while safeguarding domestic security. The results of the meeting and any ensuing policy moves are poised to shape Ford’s strategy and the automotive sector’s broader engagement with Chinese partners.
The situation remains fluid. Ford has yet to alter its China‑related agreements, and the Department of Transportation has issued no additional guidance. Investors and industry watchers will keep a close eye on developments in the coming weeks, especially as the U.S. government weighs tightening export controls and the automotive sector readies itself for the September 24 summit.
