The most recent trade agreement of Donald Trump’s government with Great Britain unfairly penalizes American companies in the automotive sector that have partnered with Canada and Mexico.
This position has now been taken by the American Automotive Policy Council (AAPC), which states that the agreement between the US and the UK “harms builders, suppliers, and workers in the automotive industry”, according to the group’s president, Matt Blunt.
The agreement revealed on Thursday between US President Donald Trump and British Prime Minister Keir Starmer reduces the tariff on British vehicles from 27.5% to 10% for the first 100,000 vehicles shipped from Great Britain to the United States.
In contrast, Ford, General Motors Company, and Stellantis, the latter being the manufacturer of the Jeep brand and members of the AAPC, face import tariffs of 25% on cars assembled in Canada and Mexico.
“We are disappointed that the government has prioritized the UK over our North American partners”, said Blunt. “With this agreement, it will now be cheaper to import a vehicle from the UK with very little American content, to the detriment of a vehicle from Mexico or Canada, which has half of its parts made in America.”
It should be noted that Donald Trump announced last week some measures to reduce the impact of tariffs on imported automotive parts, measures that were well received by GM and Ford.
The Trump administration will allow companies that assemble automobiles in the United States to deduct a fraction of the cost of imported parts for two years to give the industry enough time to realign its supply chains.
“We hope that this preferential access for vehicles from the UK compared to American ones does not set a precedent for future negotiations with Asian and European competitors.”, said Blunt.
