Detroit automakers General Motors, Ford, and Stellantis are criticizing the UK trade deal made under former President Donald Trump, as it gives British carmakers an advantage in the US market with lower tariffs.
The trade deal allows British carmakers to export up to 100,000 vehicles annually to the US at a 10% tariff rate, creating concerns about the competitiveness of USMCA-compliant vehicles from Mexico and Canada.
The American Automotive Policy Council (AAPC) warns that the UK deal could disrupt North American supply chains and set a risky precedent for future trade agreements.
US automakers fear that preferential deals like this could jeopardize the balance they've maintained in North American manufacturing over the years, leading to increased expenses and pricing challenges.