A group representing General Motors, Ford and Stellantis blasted President Donald Trump's trade deal announced with the UK, saying it would harm the US car sector.
British carmakers will be given a quota of 100,000 cars a year that can be sent to the US at a 10% tariff rate, almost the total Britain exported last year, compared with 25% for Mexico and Canada and nearly all other countries.
“Under this deal, it will now be cheaper to import a UK vehicle with little US content than a USMCA compliant vehicle from Mexico or Canada that is half American parts,” said the American Automotive Policy Council, which represents the Detroit Three carmakers. “This hurts American carmakers, suppliers and car workers.”
US carmakers are concerned this could be a template for other agreements that could put vehicles they assemble in Canada or Mexico at a disadvantage. The White House did not immediately respond to a request for comment.
The group added it hopes “this preferential access for UK vehicles over North American ones does not set a precedent for future negotiations with Asian and European competitors.”
Trump last month softened the blow of his car tariffs by easing the impact of tariffs on parts and materials but left in place 25% tariffs on imported vehicles. He also extended a duty-free exemption for North American parts that comply with the US-Mexico-Canada trade agreement (USMCA) rules of origin.
Carmakers have hoped Trump would ease vehicle tariffs.
Ford this week confirmed it hiked prices of some Mexican-built vehicles because of tariffs and said Trump's trade war would add about $2.5bn (R45.56bn) in costs for 2025, but expects to reduce that exposure by about $1bn (R18.22bn).
Rival GM said tariffs were projected to cost it between $4bn (R72.91bn) and $5bn (R91.1bn) but it expected to offset that by at least 30%, while Toyota projected tariff costs for April and May at about $1.2bn (R21.86bn).
Detroit's Big Three carmakers blast Trump UK trade deal
Image: Anna Moneymaker/Getty Images
A group representing General Motors, Ford and Stellantis blasted President Donald Trump's trade deal announced with the UK, saying it would harm the US car sector.
British carmakers will be given a quota of 100,000 cars a year that can be sent to the US at a 10% tariff rate, almost the total Britain exported last year, compared with 25% for Mexico and Canada and nearly all other countries.
“Under this deal, it will now be cheaper to import a UK vehicle with little US content than a USMCA compliant vehicle from Mexico or Canada that is half American parts,” said the American Automotive Policy Council, which represents the Detroit Three carmakers. “This hurts American carmakers, suppliers and car workers.”
US carmakers are concerned this could be a template for other agreements that could put vehicles they assemble in Canada or Mexico at a disadvantage. The White House did not immediately respond to a request for comment.
The group added it hopes “this preferential access for UK vehicles over North American ones does not set a precedent for future negotiations with Asian and European competitors.”
Trump last month softened the blow of his car tariffs by easing the impact of tariffs on parts and materials but left in place 25% tariffs on imported vehicles. He also extended a duty-free exemption for North American parts that comply with the US-Mexico-Canada trade agreement (USMCA) rules of origin.
Carmakers have hoped Trump would ease vehicle tariffs.
Ford this week confirmed it hiked prices of some Mexican-built vehicles because of tariffs and said Trump's trade war would add about $2.5bn (R45.56bn) in costs for 2025, but expects to reduce that exposure by about $1bn (R18.22bn).
Rival GM said tariffs were projected to cost it between $4bn (R72.91bn) and $5bn (R91.1bn) but it expected to offset that by at least 30%, while Toyota projected tariff costs for April and May at about $1.2bn (R21.86bn).
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