Some top automakers are furious.
President Trump’s latest trade agreement with the United Kingdom is stirring backlash among U.S. automakers—especially the Big Three: Ford, General Motors, and Stellantis.
The heart of the controversy? A new provision that allows British carmakers to export up to 100,000 vehicles per year to the U.S. at a reduced 10% tariff rate—a huge break compared to the 25% tariffs faced by manufacturers in Mexico, Canada, and most other countries.
American-Made Cars at a Disadvantage?
Industry leaders warn that this deal could undermine American manufacturing. The American Automotive Policy Council, which represents Detroit’s biggest automakers, issued a statement calling the agreement “deeply concerning.”
“It could soon be cheaper to import a UK-built car with barely any U.S. content than one assembled in North America using nearly 50% American-made parts,” the group stated.
For those who’ve supported President Trump’s ‘America First’ economic agenda, this deal may raise questions about whether domestic auto workers could face long-term disadvantages under similar future agreements.
Will This Be the Template for Future Trade Deals?
Auto executives are now watching closely. They fear this UK arrangement may become a blueprint for future trade negotiations with Asian and European carmakers, further threatening U.S.-based production and supply chains.
White House: Trump Is Still Fighting for U.S. Manufacturing
Despite industry concerns, the White House is standing firm. Spokesman Kush Desai defended the agreement, emphasizing President Trump’s long-standing commitment to the auto industry.
“No president has taken a stronger stand for American manufacturing than President Trump,” Desai said. “This administration is working side-by-side with automakers to reshore critical supply chains through custom tariff relief and cutting unnecessary regulations.”
Tariffs Still Weigh Heavy on American Brands
Trump has already softened some auto tariffs, particularly on imported parts and materials. North American components that meet USMCA (U.S.-Mexico-Canada Agreement) rules still qualify for duty-free status.
Even so, automakers are feeling the heat:
- Ford said Trump’s trade policies would add $2.5 billion in costs for 2025. It’s taking steps to reduce that by $1 billion.
- General Motors (GM) projected $4–$5 billion in tariff-related expenses but plans to offset 30%.
- Toyota estimated $1.2 billion in tariff costs for just April and May alone.
Ford has already raised prices on certain Mexican-built vehicles due to these rising costs.
Trump’s Trade Agenda: A Balancing Act?
President Trump’s tough stance on trade has drawn praise for putting America first. But deals like this one with the UK are prompting new debate—especially from industries that have long supported Trump’s economic vision.
As global trade realigns and China looms as a competitor, the American auto sector remains a critical battlefield. Voters and workers alike will be watching how Trump balances tariff relief, foreign trade, and Made-in-America jobs.