Ford and Tesla dance to Xi’s tune

Published September 24, 2020 5:46pm ET



Matching traditions of workmanship and innovation to capitalist consumption, Ford and Tesla, in many ways, represent the best of America. But their federal court filing this week against tariffs on China is less auspicious.

Alongside Volvo and Mercedes Benz, the two American firms have filed in the Court of International Trade to claim that the Trump administration’s 25% tariffs on certain Chinese car-related exports are “arbitrary, capricious, and an abuse of discretion.” Considering that the Chinese market of 1.4 billion people is a major draw for each of these firms, it’s possible that Beijing put the companies up to this lawsuit. The profit incentive and corollary risk of Chinese retaliation against American firms is no small concern. Tesla vehicles are now seen as a status symbol among China’s upper middle class, for example. Ford and Tesla don’t want to alienate a major market or the government controlling access to that market.

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