America’s automakers have strafed President Donald Trump’s “big beautiful” tentative trade deal with the U.K.
Ford, GM and Stallantis complained the “deal,” which hasn’t yet been officially agreed to, will actually hurt U.S. automakers by putting them at a competitive disadvantage with British companies.
Under the deal, Britain can send a quota of 100,000 cars annually to the U.S. with a 10 percent tariffs (amounts over that level will face 27.5 percent tariffs). Steel exports will be tariff free.
The U.S. carmakers said their vehicles produced in Canada and Mexico, or produced with parts from those countries or with steel from those countries, continue to face devastating 25 percent tariffs.
“Under this deal, it will now be cheaper to import a U.K. vehicle with very little U.S. content than a … vehicle from Mexico or Canada that is half American parts,” said the American Automotive Policy Council, which represents the Detroit Three automakers. “This hurts American automakers, suppliers, and auto workers.”
The statement further complained: “We are disappointed that the administration prioritized the UK ahead of our North American partners. We hope this preferential access for UK vehicles over North American ones does not set a precedent for future negotiations with Asian and European competitors.”
Ford, GM and Toyota have already predicted hundreds of billions of dollars in extra costs due to Trump’s trade war. Much of the costs will be paid by the car companies to cover tariffs on imported parts or steel will be passed onto the American consumer.
White House press secretary Karoline Leavitt told reporters that the UK agreement is a “good deal” for US carmakers, but did not explain how that’s possible.
She insisted that Trump listens to the concerns of the auto industry and wants to see them succeed.
“The president wants to put them on the best pedestal to compete,” Leavitt said. “This is a good deal for them, too.”
Other critics have bashed the plan, pointing out that beyond Trump’s exemption for British steel, his across-the-board 10 percent tariff remains on all other products around the world (and still including Britain).
That means American importers will have to continue to pay those levies, and pass on some if not all of the extra costs to U.S. consumers, leaving them in a worse situation than before Trump took office.
