WASHINGTON – A group representing major U.S. automakers complained about President Donald Trump’s trade deal giving an advantage to United Kingdom manufacturers, but the White House said it would be a good deal for them, too.
Trump announced a deal May 8 for a 10% tariff on the first 100,000 cars imported each year from the United Kingdom, down from 25% for imports from the rest of the world. That’s about the number of vehicles Britain exported last year, according to Reuters.
A group representing General Motors, Ford and Stellantis said the trade deal would hurt domestic companies that manufacture cars or parts in Canada and Mexico. U.S. manufacturers have factories in both countries under the USMCA trade agreement, but cars that are partially produced in those countries are now subject to a 25% tariff.
“This hurts American automakers, suppliers, and auto workers,” the American Automotive Policy Council said in a statement May 8.
US automakers ‘disappointed’ in trade deal with United Kingdom
Part of the cause for concern is that Trump and his aides called the arrangement with the United Kingdom a template for deals with other countries.
Ford, GM and Toyota have each predicted billions in added costs due to Trump’s trade war.
“We are disappointed that the administration prioritized the UK ahead of our North American partners,” the automakers said. “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,”
White House says trade deals ‘tailor made’ for each country
Asked about the complaints, White House press secretary Karoline Leavitt told reporters May 9 that Trump listens to the concerns of the auto industry and wants to see them succeed.
“The president wants to put them on the best pedestal to compete,” Leavitt said. “This is a good deal for them, too.”
Leavitt said trade deals would be negotiated separately, when asked if European and Asian automakers would receive similar deals.
“All of these deals are going to be tailor made,” Leavitt said. “Each country has unique concerns and challenges.”
Contributing: Reuters
This article originally appeared on USA TODAY: US automakers ‘disappointed’ in Trump’s United Kingdom trade deal
