By Charles Switzer
2:41am PDT, May 10, 2025
U.S. Automakers React to Trump's U.K. Trade Deal
A coalition representing the major U.S. automakers, including General Motors, Ford and Stellantis, sharply criticized President
Donald Trump's newly announced
trade deal with the United Kingdom, the
New York Post reported.
According to the American Automotive Policy Council, the agreement could severely harm the US auto industry. The trade deal grants British carmakers a quota of 100,000 vehicles per year that can be imported into the United States at a 10 percent tariff rate.
This amount nearly matches the total number of cars Britain exported to the U.S. in the previous year, while Mexico and Canada face a higher 25 percent tariff rate for vehicles.
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Concerns Over Competitive Disadvantages
The American Automotive Policy Council, which advocates for the Detroit Three automakers, expressed significant concern. "Under this deal, it will now be cheaper to import a U.K. vehicle with very little U.S. content than a USMCA-compliant vehicle from Mexico or Canada that is half American parts," they stated.
The group added that Donald Trump's deal could set a troubling precedent that disadvantages vehicles assembled in North America, which are subject to stricter compliance rules under the US-Mexico-Canada Agreement (USMCA).
Automakers have expressed fears that this agreement could pave the way for similar trade deals that negatively impact their competitiveness against international manufacturers.
A Template for Future Trade Deals?
There is growing anxiety among U.S. automakers that the deal with the U.K. could serve as a model for other future trade agreements.
The White House, which was asked for comment did not immediately respond, leaving many in the industry concerned about the
long-term implications. The American Automotive Policy Council raised the issue directly, stating that they hoped this preferential treatment for U.K. vehicles would not set a precedent for future negotiations with Asian and European competitors, which could result in even more unfavorable conditions for U.S. manufacturers.
Trump's Tariffs and Their Economic Impact
While President Donald Trump recently softened the impact of his auto tariffs by easing restrictions on parts and materials, he maintained the 25 percent tariffs on imported vehicles.
These tariffs have become a focal point of criticism, with automakers hoping for a reduction in vehicle tariffs. Ford, for instance, confirmed it had increased the prices of some vehicles manufactured in Mexico due to the ongoing tariffs. The company estimated that Trump's trade policies would add $2.5 billion to its costs for 2025, although it expects to offset about $1 billion of that.
Meanwhile, General Motors anticipates that the tariffs will cost it between $4 billion and $5 billion but expects to reduce the financial burden by at least 30 percent. Toyota also projected significant costs, estimating that combined tariff impacts for April and May alone would reach approximately $1.2 billion.
Social Media Reactions
The public response on social media has been a mix of concern and frustration.
One Instagram user wrote, "If it's cheaper to import a U.K car than a North American one, something's gone terribly wrong. The American workers and companies will pay the price."
Another posted on X saying, "Seems like [Donald] Trump's trade deal favors foreign countries over U.S. workers yet again. How is that 'America First?'"
