Detroit Automakers Criticize US-UK Trade Deal, Claiming Harm to Domestic Car Sector
The American Automotive Policy Council, representing General Motors, Ford, and Stellantis, has voiced strong opposition to the recent trade agreement between the United States and the United Kingdom. The council argues that the deal favors British carmakers and will negatively impact the U.S. automotive industry.
Key Concerns
- Tariff Disparity: the agreement grants British car manufacturers a quota of 100,000 vehicles annually that can be imported into the U.S.with a 10% tariff [1], [2], [3].
- Competitive Disadvantage: This 10% rate is considerably lower than the 25% tariff imposed on vehicles from Mexico and Canada, as well as most other countries.
- Impact on USMCA: The council contends that the deal undermines the United States-Mexico-Canada agreement (USMCA).
The Automakers’ Viewpoint
The American Automotive Policy Council articulated their concerns directly:
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 US parts.
American Automotive Policy Council
The council further emphasized the potential consequences for domestic stakeholders:
This hurts US automakers, suppliers, and auto workers.
American Automotive Policy Council
Background on US Trade Policies
The US has implemented a 10% tariff on imports from most countries [1]. Additional tariffs include 25% on cars, steel, and aluminum, as well as specific tariffs on Canada, Mexico, and China.
- April 2nd Announcement: President Trump initially imposed a 10% tariff on most countries, with higher rates for some trading partners. These were temporarily suspended for 90 days.
- Existing Tariffs: The US maintains a 25% tariff on steel and aluminum.
- China Tariffs: A significant 145% tariff is in place for goods from China.
US-China Trade Talks
Officials from the united States and China are scheduled to meet in Switzerland on Saturday to discuss trade-related issues.
FAQ: US-UK Trade Deal
- What is the main concern about the US-UK trade deal?
- The main concern is that it gives UK carmakers preferential tariff rates compared to other countries, including those in the USMCA.
- How many UK cars can be imported into the US under the deal?
- Up to 100,000 UK-made cars can be imported into the US annually at a 10% tariff rate [2].
- Who opposes the trade deal?
- The American Automotive Policy Council, representing General motors, Ford, and Stellantis, opposes the deal.
