The so-called Trump Tariff deal with the U.K. is actually a disaster for America and U.S. auto makers. Let’s not forget that the U.K. tariff is still higher at 10 percent on everything except for 100,000 cars. The previous tariff rate was around 3 percent, but now Trump has decided to crank it up to 10 percent.
Under this deal, it will now be more cost-effective to import a UK vehicle with minimal U.S. content than a USMCA compliant vehicle from Mexico or Canada that is made up of half American parts. This is a real slap in the face to American automakers, suppliers, and auto workers.
GM has indicated that levies could result in a loss of approximately $5 billion from its profits this year, whereas Ford anticipates experiencing a $1.5 billion impact.
America’s “big three” automakers wasted no time in expressing their displeasure with President Trump’s latest trade agreement with the United Kingdom. As a result of the increased tariffs on imported goods, Stellantis had to halt production at plants in Canada and Mexico, both of which are subject to taxes on foreign vehicles. The council, which represents Ford, General Motors (GM), and Stellantis, is not holding back in criticizing the president. Despite having factories in the United States, these companies are bracing themselves for significant setbacks due to the tariffs imposed by Trump. It’s almost as if the president doesn’t realize the interconnectedness of the auto industry across North America. But hey, who needs a thriving auto industry anyway, right?
Blue Press Journal 