For Joe Hinrichs, Ford’s president of the Americas, Fourth of July week 2018 was a fireworks show that needed no pyrotechnics. Tariffs on automobiles shipped to China from the U.S. went from 25% on June 30, down to 15% on July 1, then all the way up to 40% on July 7. U.S. President Donald Trump and Chinese President Xi Jinping were exchanging threats and issuing ultimatums in an escalating trade war.
Boats bound for China in June idled in international waters, so they could drop anchor when the lower tariffs went into effect on July 1. Meanwhile, other, more distant boats gunned to arrive at port on July 6, before the 40% tariffs took hold.
