WASHINGTON, D.C. – President Donald Trump’s framework for a trade deal with the United Kingdom includes lower tariffs on vehicles from that nation, a move that U.S. automakers oppose.
American Automotive Policy Council President Matt Blunt said the import duties on UK vehicles could end up being lower than those on American-made vehicles.
“The U.S. automotive industry is highly integrated with Canada and Mexico; the same is not true for the U.S. and UK,” he said. “We are disappointed that the administration prioritized the UK ahead of our North American partners.”
Ford, GM and Stellantis could be at a disadvantage under terms of the United States-Mexico-Canada Agreement, a trade pact Trump signed during his first term.
“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,” Blunt said. “This hurts American automakers, suppliers, and auto workers. 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.”
The American Automotive Policy Council represents Ford Motor Company, General Motors Company and Stellantis.
Under the framework of the UK deal, the first 100,000 vehicles imported from UK manufacturers each year will be subject to a 10% tariff. Any additional vehicles each year would be subject to the higher 25% rate. The U.S. will also negotiate an alternative arrangement with the UK on steel and aluminum, according to the White House.