A group that represents General Motors, Ford and Stellantis criticized the commercial agreement announced by President Donald Trump with the United Kingdom, saying that he would damage the US automotive sector.
British car manufacturers will receive a fee of 100,000 cars a year that can be sent to the United States with a 10% tariff, almost the total that Great Britain exported last year, compared to 25% for Mexico, Canada and almost all other countries.
“With this agreement, it will now be cheaper to import a vehicle from the United Kingdom with very little American content than a vehicle that meets the TMEC from Mexico or Canada and is composed of 0.5% by US pieces,” said the US Automotive Policy Council (APC), which represents the three Detroit car manufacturers.
“This harms US manufacturers, suppliers and workers in the US automotive sector,” he added.
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American automobile manufacturers are concerned that this can serve as a model for other agreements that could harm vehicles that assemble in Canada or Mexico. The White House did not immediately respond to a request for comments.
The group added that “this preferential access of the United Kingdom vehicles over Americans does not feel a precedent for future negotiations with Asian and European competitors.”
Last month, Trump softened the impact of his automotive tariffs by reducing the effect of tariffs on parts and materials, but maintained 25% tariffs on imported vehicles. It also extended a tariff exemption for US pieces that comply with the rules of origin of the commercial treaty between the United States, Mexico and Canada (TMEC).
Automobile manufacturers expected Trump to relieve tariffs on vehicles.
Ford confirmed this week that the prices of some vehicles manufactured in Mexico increased due to tariffs and said that Trump’s commercial war would add around 2.5 billion dollars in costs by 2025, but hopes to reduce that exhibition by around 1,000 million dollars.
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His GM rival said it is estimated that tariffs will cost between 4 and 5 billion dollars, but hopes to compensate for at least 30%, while Toyota projected tariff costs for April and May in around 1.2 billion dollars.
With Reuters information
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