Big three US car makers angered by UK trade deal
A group representing the big three American car makers, Ford, General Motors, and Stellantis (which owns Chrysler) has expressed anger at the trade deal with the UK. Trump’s deal, they say, would harm the American car industry.
Under the deal, British carmakers will have a quota of 100,000 cars annually that can be shipped to the US with a 10% tariff rate. That is close to the total number of cars Britain exported to America last year. Cars delivered from Mexico and Canada and nearly all other countries will be hit with a 25% levy.
“Under this deal, it will now be cheaper to import a UK vehicle with very little U.S. content than a USMCA compliant vehicle from Mexico or Canada that is half American parts,” the American Automotive Policy Council, which represents Detroit’s big three said. “This hurts American automakers, suppliers, and auto workers.”
American car makers are concerned that this could be a template for other deals, putting any vehicle made in Canada or Mexico at a disadvantage.
Spokesperson for the White House, Kush Desai, defended the deal. “No president has taken a greater personal interest in reviving the American auto industry than President Trump,” he said. “The Trump administration is working hand-in-glove with automakers to reshore manufacturing that is critical to our national and economic security, including with custom-tailored tariff relief and deregulatory policies.”
The group representing the big three said it hopes that “this preferential access for UK vehicles over North American ones does not set a precedent for future negotiations with Asian and European competitors.”
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