U.S. Transportation Secretary Sean Duffy recently appeared on ‘Varney & Co.’ to talk about the competition between the U.S. and China regarding lunar exploration, including ambitions for a permanent base on the Moon, the potential for nuclear power in space, and improvements needed in the air traffic system.
In a letter addressed to Ford Motor Co. CEO Jim Farley, Duffy expressed concern over the automaker’s increasing reliance on Chinese firms. He warned that these business connections could pose risks to U.S. national security and threaten American manufacturing jobs.
This letter serves as one of the Trump administration’s strongest criticisms directed at a significant American car manufacturer for its ties with China. Duffy emphasized his worries about Ford’s current trajectory, stating that the firm seems to be intertwining its future with state-backed Chinese enterprises.
Administration officials stress that there are two main issues at play: first, Chinese laws that might compel companies to share sensitive information with the government, which raises potential national security alarms; and second, that dependence on Chinese manufacturing could come at the cost of local jobs for American workers.
Duffy highlighted various instances in his letter, such as Ford’s use of battery technology licensed from Chinese company CATL in its BlueOval Battery Park located in Marshall, Michigan. He also mentioned Ford’s joint venture with Geely in Spain, discussions regarding hybrid vehicle components with BYD, and delays in plans to move Lincoln model production back to the U.S., which may not happen until 2030.
He pointed out that these actions further entrench Ford’s connection to Chinese supply chains while enabling competitors to gain ground in the global auto market. Duffy stated that by choosing to deepen ties with strategic rivals, Ford is not meeting the standards expected by the American public or the Department of Transportation.
Duffy urged the company to lessen its reliance on foreign tech, arguing that iconic American firms, like Ford, need to lead in innovation and chart paths toward technological independence.
Ford reacted strongly to Duffy’s claims, calling the letter an ill-informed effort to attract media attention at the expense of a company that has contributed significantly to American manufacturing over the years. The automaker defended its Michigan facility as a substantial investment expected to create around 1,700 U.S. jobs. Ford added that its agreement with CATL is merely a technology-licensing arrangement, not a foreign ownership or joint venture.
Moreover, Ford contended that Duffy’s letter included inaccuracies regarding its manufacturing intentions, noting that the White House had recently recognized the Marshall battery project. They also referred to a statement from Commerce Secretary Howard Lutnick that praised Ford’s expansion of Lincoln production in America.
Ford stated, “We support the Trump administration’s vision for enhancing American innovation and manufacturing,” suggesting that if Duffy had contacted them prior to sending the letter, they would have been glad to clarify Ford’s commitment to U.S. operations.
This correspondence arrives amidst calls from lawmakers and industry leaders for stricter limits on Chinese participation in the American automotive sector.
In July, a Senate committee approved bipartisan legislation aimed at banning the import and sale of vehicles made by companies identified as foreign entities of concern, which includes firms based in China. This proposal would also restrict certain technologies related to connected vehicles developed by those nations.
Additionally, the Alliance for Automotive Innovation has urged Congress to implement a permanent prohibition on vehicles manufactured in China being sold in the U.S.
