US automakers furious at Trump’s trade deal with UK — and here’s why
A trade deal announced by President Trump with the United Kingdom has faced criticism from a group representing General Motors, Ford, and Stellantis. The deal allows British carmakers to export up to 100,000 cars a year to the United States at a 10% tariff rate, potentially impacting the US auto sector.
The American Automotive Policy Council, which represents the Detroit Three automakers, expressed concerns over the preferential treatment given to UK vehicles over those from Mexico and Canada. They stated, “Under this deal, it will now be cheaper to import a UK vehicle with very little US content than a USMCA compliant vehicle from Mexico or Canada that is half American parts. This hurts American automakers, suppliers, and auto workers.”
The group is worried that this deal could set a precedent for similar agreements that disadvantage vehicles assembled in Canada or Mexico. They also raised concerns about future negotiations with Asian and European competitors.
President Trump recently adjusted auto tariffs by easing the impact on parts and materials while maintaining 25% tariffs on imported vehicles. Automakers had hoped for a reduction in vehicle tariffs.
Ford has already increased prices on some Mexican-built vehicles due to tariffs and estimates that Trump’s trade war will add around $2.5 billion in costs by 2025. However, they aim to reduce this exposure by $1 billion. On the other hand, GM projects that tariffs will cost them between $4 billion and $5 billion but expects to offset some of these costs. Toyota also anticipates tariff costs of approximately $1.2 billion for April and May.
