Trump administration blasts Ford Motor’s China ties, warns of US national security risks
WASHINGTON, DC: The Trump administration is escalating its conflict with Ford Motor Company, as Transportation Secretary Sean Duffy sent a letter to CEO Jim Farley expressing "profound concern" about the auto giant's business practices involving Chinese companies and warning that they could hurt Ford and the industry as a whole.
In the letter, dated Tuesday, September 8, Duffy questioned Ford's strategic direction with Chinese firms.
Ford-CATL deal fuels Trump administration dispute
Duffy said he had "profound concern" about Ford's business practices "as it pertains to American national automotive manufacturing integrity, supply chain exposure, and reliance on technologies of foreign adversaries."
Ford fired back, calling the letter a "wrongheaded attempt to capture headlines."
At the center of the dispute is Ford's licensing arrangement with Contemporary Amperex Technology Co, or CATL, which allows the automaker to use the battery maker's technologies, including the production of lithium iron phosphate cells.
The deal was first announced in 2023, according to CNBC, but it has drawn renewed scrutiny amid US-China tensions and Ford's plan to apply the technology to energy storage systems.
Duffy also took aim at a framework Farley floated during an auto show in Detroit earlier this year, which the secretary characterized as a proposal "to facilitate Chinese joint ventures on United States soil." Ford disputes that account.
The company said the letter contained "factual errors," specifically pointing to Duffy's claim that Farley had proposed a joint-venture framework for Chinese automakers to enter the US market.
"While DOT recognizes the intense competitive pressures of the global market, the Company's recent strategic decisions paint a troubling picture of a foundational American brand actively intertwining its future with Chinese state-backed enterprises," Duffy wrote.
He urged Farley to "reflect on these concerns and national necessities and adopt reasonable strategies that prioritize American workers, utilize allied supply chains, and promote the self-reliance and integrity of the domestic automotive industry."
Ford defends US manufacturing record amid Trump dispute
Ford leaned on its domestic manufacturing record in response, reiterating its position as the top-producing automaker in the US and saying it employs more hourly workers in the country than any rival, per the company's statement to CNBC.
The company also pressed Duffy to engage directly rather than through the press.
"Ford supports the Trump administration's vision for advancing American innovation and manufacturing," the company said.
"Had Secretary Duffy reached out before issuing his letter to the press, we would have been happy to share more details about Ford's US commitment."
The dispute comes as part of a chain of conflicts between the US auto sector and the Trump administration, which has shaken up trade rules and regulations at the federal level.
Farley has sought to walk a tightrope in the debate, praising Chinese competitors' capabilities at one point while applauding the president's push for America-first production policies at another.
With both sides showing little sign of backing down, Ford's partnership with CATL and its pursuit of energy storage dominance face the ongoing risk of intensifying the standoff, with little sign of a political resolution to the dispute.
