The Duffy letter: what Ford was asked to do
US Transportation Secretary Sean Duffy sent a letter to Ford chief Jim Farley demanding an end to strategic partnership with Chinese companies and a rollback of joint projects tied to Chinese technology. According to press reports, the secretary said dependence on China tech threatens national security and takes jobs from Americans. The news broke on September 8 2026, with an MT Newswires headline on the administration criticism of Ford appearing in the Yahoo Finance feed that same evening.The letter itself is hard to read directly for now: the US DOT site returns access errors from this network and the Ford press center does not open. The fact of the letter and its general meaning are confirmed by the news feed, while exact wording of the demands is known only secondhand.
Why Ford and why China
Ford is an easy target for two reasons. First, it is a flagship US automaker directly exposed to Washington decisions on tariffs, subsidies and rules of origin. Second, the company has known touchpoints with Chinese supply chains: battery projects, technology licensing and procurement.It seems to me the letter works on two levels: a public signal on jobs and a practical warning to the company about the price of joint projects with China.
- Recipient - Ford chief Jim Farley, sender - Secretary Sean Duffy;
- Core demand - exit strategic partnership with Chinese firms and wind down joint projects;
- Reasoning - national security threat and lost US jobs;
- Context - the broader administration push to cut tech ties with China in autos.
Fig. 1. Ford shares daily closes July 28 to September 8 2026 in dollars. September 8 at 14.00 down 4.24 pct on the day. Yahoo Finance data.
How the market reacted
The Ford share reaction on September 8 was sharp. According to Yahoo Finance, the stock closed at 14.00 dollars, losing 0.62 dollar or 4.24% on the day on volume near 45.1 million shares. The daily range was 13.87-14.60, so the stock slid clearly from the open. After hours it sat near 14.02 dollars with almost no bounce.This is where it gets more interesting next to peers. General Motors lost about 2.24% to 85.79 dollars the same day, while the broad market also fell: the S and P 500 down 0.58%, the Dow down 1.18%. Ford fell harder than the market and harder than GM, which looks like a specific reaction to the China letter rather than plain risk off.
- Ford - 14.00 dollars, down 4.24%, volume 45.1 million shares;
- GM - 85.79 dollars, down 2.24%;
- S and P 500 - 7673.52, down 0.58%;
- Ford market cap - about 55.8 billion dollars.
ℹ INFO
Ford fell about twice as hard as GM and many times harder than the index. The market clearly singled the company out and tied the move to the letter news.
What sits behind Ford numbers
Beyond one day, Ford looks mixed. On one hand, the stock gained about 25% over a year and about 10% year to date. On the other hand, fundamentals look strained: trailing revenue near 188 billion dollars but net loss near 7.4 billion, margin minus 3.9%, loss per share 1.87 dollars. Analysts on average target about 15.85 dollars, but ratings stay mostly cautious.One more touch: the May spike to 17.44 dollars, the high of the two-year window, after which the stock slid back to 14.
Fig. 2. Automaker shares monthly September 2024 to September 2026 in dollars. Ford GM and Stellantis. Yahoo Finance data.
What the letter means for Ford business
The practical risk for Ford is not the letter itself but what may follow. Breaking or revising joint projects with Chinese partners means rebuilding supply chains, new costs and lost time in batteries and electric vehicles. Ford already posted a Q2 2026 loss of 1.33 billion dollars on 48.3 billion revenue, so a fresh cost hit comes at a bad moment.The second risk is regulatory. If the administration ties benefits and contracts to dropping Chinese tech, Ford has little room. The third risk is retaliation: escalation with Beijing could hit Ford business inside China and supplies. Ford already posted a Q2 2026 loss of 1.33 billion dollars on 48.3 billion revenue, so a fresh cost hit comes at a bad moment.
- Supply chain rebuild - new suppliers, timelines and battery costs;
- State support access - possible link of benefits to dropping China tech;
- China market - risk of countermeasures against Ford operations in China;
- Competition - GM and Stellantis follow their own paths, lagging would cost share.
Why the story is bigger than one letter
In my view, the Duffy letter reads as part of a broad reset, not a personal shot at Farley. GM rose from 45 to 85 dollars over two years while Stellantis slid from 13 to 5.4 dollars, each with its own electrification bet.For the market the question is now simple: will Ford answer with concrete steps or general words on commitment to US manufacturing. The first would calm Washington but cost money. The second keeps flexibility but leaves the stock under headline pressure.
⚠ IMPORTANT
Ford has no cheap exit: breaking with Chinese partners costs money, keeping ties costs political risk. The shares already sided with sellers.