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yesterday

U.S.-U. Auto Trade Deal Draws Sharp Criticism from Domestic Automakers

The White House defends a new tariff framework lowering duties on British cars, despite industry claims it disadvantages North American supply chains.

Final inspection is performed as the vehicles are ready to leave the assembly line at the General Motors manufacturing plant in Spring Hill, Tennessee, U.S., August 22, 2019.
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Overview

  • The preliminary U.S.-U.K. trade agreement reduces tariffs on the first 100,000 British cars imported annually to 10%, while maintaining 25% duties on most other foreign imports.
  • U.S. automakers, represented by the American Automotive Policy Council, argue the deal unfairly favors U.K. manufacturers over vehicles partially produced in Canada and Mexico under the USMCA framework.
  • The White House insists the deal incentivizes domestic manufacturing, emphasizing that U.S.-built vehicles would remain tariff-free.
  • Press Secretary Karoline Leavitt assured that the agreement with the U.K. will not serve as a template for future trade negotiations, as each deal will be customized.
  • Automakers have expressed disappointment, urging the administration to prioritize North American trade partners and warning against setting a precedent for future agreements.