US auto industry criticizes Trump's trade deal with UK
The new trade deal between the United States and the United Kingdom is drawing criticism from the US auto industry, which says it could disadvantage domestic manufacturers.
Under the agreement, announced by US President Donald Trump and British Prime Minister Keir Starmer on Friday, tariffs on 100,000 UK-made vehicles imported to the US will be reduced from 25% to 10%.
The American Automotive Policy Council (AAPC), which represents the Big Three US automakers — Ford, General Motors and Stellantis — warned the move would give UK producers an unfair edge over US-based firms.
Trump's administration previously imposed 25% tariffs on imported vehicles and parts.
Carmakers in the US rely on parts and production from Mexico and Canada, much of which currently remains exempt from tariffs under the US-Mexico-Canada Agreement (USMCA).
However, these exemptions are expected to shrink over time. The AAPC said that under the new deal, it could soon be cheaper to import a UK vehicle than one from Mexico or Canada that contains a significant portion of US parts, leading to a disadvantage for US manufacturers, suppliers and workers.
US Commerce Secretary Howard Lutnick argued that the 100,000 vehicles in question represent only a small share of the US market but were a relevant amount for UK brands such as Rolls-Royce, Bentley and Jaguar Land Rover.
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