If one thing has been clear since “Liberation Day,” it’s that one never knows exactly what to expect.
In particular the reactions from others … which is exactly why the response of legacy American automakers to the most recent trade deal publicized by the Trump administration.
“A group representing General Motors, Ford and Stellantis blasted President Trump’s trade deal announced with the United Kingdom, saying it would harm the US auto sector … British carmakers will be given a quota of 100,000 cars a year that can be sent to the United States at a 10% tariff rate, almost the total Britain exported last year, compared to 25% for Mexico and Canada and nearly all other countries,” the New York Post detailed.
A rather unexpected development, to put it mildly.
Especially as the tariffs are meant to help American automakers, as Trump and Vance have jointly stressed.
That said, for some reason, the American Automotive Policy Council, which represents the Detroit Three automakers, has blasted the recent trade deal from the Trump administration as an effective giveaway to the UK at the expense of the US.
“Under this deal, it will now be cheaper to import a UK vehicle with very little US content than a USMCA compliant vehicle from Mexico or Canada that is half American parts. This hurts American automakers, suppliers, and auto workers,” the council asserted.
The council also expressed strong hope that “this preferential access for UK vehicles over North American ones does not set a precedent for future negotiations with Asian and European competitors.”
One would hope.
One would also wonder why the Trump administration would strike such a deal that puts American automakers at an apparent disadvantage, if the American Automotive Policy Council is representing the entire situation accurately.
One thing is for certain: Different media outlets clearly have different takes.
According to a report from Fortune, the Trump administration initiated the reduction in tariffs for UK automakers in part due to the president’s own apparent preference for particular British brands.
“The president even confessed being inclined to reduce tariffs he had unilaterally imposed without Congressional consent since they were deemed critical to U.S. national security. On Thursday, Trump told reporters he gave them preferential treatment, because he personally was partial to Britain’s ultra-luxury car brands like McLaren, Bentley and Rolls-Royce,” Fortune reported.
Reportedly, Trump was pleased by the “handmade” nature of Bentley and Rolls Royce vehicles.
“That’s really handmade stuff. They’ve been doing it for a long time in the same location … So, I said, ‘yeah, that would be good. Let’s help them out with that one,’” Trump mused.
Interesting point.
How will the UK trade deal impact American automakers?
Time remains to tell, but it is clear that the trade war is just getting started.
Author: Jane Jones
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