US automakers expressed disappointment over President Donald Trump’s trade deal that imposed a 10% tariff on cars imported from the United Kingdom, arguing that it favored UK manufacturers over those in Canada and Mexico. The White House defended the agreement, calling it a “good deal” for all parties involved. Under the deal announced on May 8, the UK would face a lower tariff rate compared to other countries for the first 100,000 cars imported annually.
The American Automotive Policy Council, representing major automakers like General Motors, Ford, and Stellantis, raised concerns that the trade deal would negatively impact domestic companies with operations in Canada and Mexico under the USMCA trade agreement. Vehicles partially produced in these countries would now face a higher 25% tariff, affecting American automakers, suppliers, and workers.
The automakers criticized the preferential treatment given to the UK, highlighting worries that it could set a precedent for future negotiations with other competitors in Asia and Europe. Despite the backlash, the White House maintained that the trade deals would be customized for each country to address their specific concerns and challenges. The administration emphasized its commitment to supporting the auto industry and ensuring their competitiveness in the global market.
Overall, the trade agreement between the US and the UK sparked debates within the automotive sector, with conflicting views on its impact on domestic manufacturing and international trade relations.