It will be cheaper to import a British vehicle than a vehicle coming from Mexico or Canada, they pointed out.

General Motors, Ford, and Stellantis—the three largest car manufacturers in the U.S. —have criticized the trade agreement with the United Kingdom announced on Thursday by U.S. President Donald Trump.

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In a statement released by the American Automakers Policy Council (AAPC), the group representing the three automakers, the companies highlighted the contradiction in the agreement presented Thursday by Trump and British Prime Minister Keir Starmer.

“We are disappointed that the Administration has prioritized the United Kingdom over our North American partners,” the statement said.

“With this agreement, it will now be cheaper to import a British vehicle with very little U.S. content than a vehicle coming from Mexico or Canada that complies with the USMCA free trade agreement and contains half U.S. components.”

The result, AAPC stated, is harmful to “automakers, suppliers, and automotive workers in the U.S. We hope this preferential access for British vehicles over North American ones does not set a precedent for future negotiations with Asian and European competitors.”

On Friday, White House Press Secretary Karoline Leavitt clarified that the tariff reduction applies only to a portion of the cars imported from the United Kingdom.

“Let’s be clear about the agreement. It sets a 10% tariff on automobile imports for the first 100,000 cars imported to the U.S. After 100,000 vehicles, the tariff returns to 25%,” she said during a press briefing.

The three U.S. automakers had previously stated that the tariffs will cost them billions of dollars in profits this year. Ford has also decided to raise the prices of models produced in Mexico and sold in the U.S. to offset the tariffs.

According to Leavitt, President Trump’s intention is to place the country’s auto industry “on the best pedestal to compete.” “If they manufacture vehicles here in the U.S., they will not face any tariffs,” the spokesperson reiterated, emphasizing that “this is a good deal.”

teleSUR/ JF

Source: EFE

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