The company projects it sells less than 50,000 Focuses annually - a "marginal" volume that wouldn't warrant USA production.
"Our resources could be better deployed".
Moody's Investors Service this week downgraded the company's credit rating to a step removed from junk, citing risks associated with a turnaround effort that Chief Executive Officer Jim Hackett has warned could be costly and take years.
"Our viewpoint on Focus Active was that, given the tariffs, obviously our costs would be substantially higher", Galhotra said in a conference call, according toBloomberg News.More news: English Premier League Report: Chelsea v Bournemouth 01 September 2018
Galhotra said the automaker did not see "significant risk" for its other two imports from outside North America: the EcoSport crossover from India and the Transit Connect van from Spain.
Automakers have urged the Trump administration not to impose tariffs on vehicles built in China.
Galhotra told reporters the crossover wasn't worth putting money into a vehicle that they estimate would have sold less than fewer than 50,000 unit sales a year in the United States. "Given the negative financial impact of the new tariffs, we've made a decision to not import this vehicle from China", he said. "Even a US vehicle made in the USA and sold in the US will see prices rise due to imported content subject to tariff", she warned.
Ford said an exemption would not have applied to the Focus Active because of its production timing and thus did not seek one. She predicts tariffs on Chinese imports along with Trump's additional threatened 25 percent tariff on cars and possibly parts from the European Union would force several vehicles out of the American market.
The Trump administration has applied 25 percent tariffs on $50 billion in Chinese goods thus far.