Latest news with #AmericanAutomotivePolicyCouncil
Yahoo
14 hours ago
- Automotive
- Yahoo
Trump may have to choose: Making trade deals or keeping his car tariffs
President Donald Trump is telling domestic audiences he won't cut his 25 percent tariffs on foreign cars as part of any trade deals he negotiates. But other countries — who collectively send millions of vehicles to the U.S. each year — haven't gotten that message. Trading partners like the EU, Japan and South Korea are laboring under the impression that the auto tariffs, which Trump imposed in April, are still on the table, according to two people familiar with the talks between Trump officials and those countries, granted anonymity to discuss private conversations. If Trump is really unwilling to lower or eliminate his tariffs on foreign cars, it could prove to be a major hurdle to securing meaningful trade deals with some of the country's top trading partners. Japan, South Korea and Germany sold more than $121 billion in cars and car parts in the U.S. in 2024. The White House did not answer when asked if auto tariffs were on the table for negotiations and instead reiterated the goal of the tariffs. 'No president has taken a greater interest in reviving America's once-dominant auto industry than President Trump, and the auto industry is a key focus of the Trump administration's trade and economic policies,' said Kush Desai, a White House spokesperson. 'Discussions with our major trading partners continue, and the Trump administration continues to seek better trade deals for American industries and workers.' A decision to lift the tariffs for more countries, particularly those whose companies compete most fiercely with American carmakers, risks alienating a powerful manufacturing bloc and undercutting a central tenet of Trump's trade agenda — forcing companies to build more products in the U.S. The Trump administration has assured American automakers that when it comes to auto tariffs being used as a bargaining chip, they have 'nothing to worry about,' according to a person familiar with discussions between the administration and Detroit's 'Big Three' auto companies, granted anonymity because of the sensitive nature of the talks. Trump has said a deal to lower the tariff on a small number of British cars, announced last month, was an exception. 'I won't do that deal with cars' for other countries, Trump said when announcing the terms of negotiation with the U.K. on May 8. The British auto brand Rolls-Royce is 'a very special car and it's a very limited number too. It's not one of the monster car companies that makes millions of cars,' he noted. Even that agreement, which lowered the tariff on 100,000 cars, less than 1 percent of total U.S. annual car sales, drew a sharp rebuke from U.S. automakers. 'This hurts American automakers, suppliers, and auto workers,' the American Automotive Policy Council, which represents General Motors, Ford and Stellantis, said at the time, saying they hoped it 'does not set a precedent for future negotiations with Asian and European competitors.' The tension between the two goals — boosting domestic auto production while also negotiating delicate agreements to lower trade barriers — highlights the challenge facing the administration as it races to secure deals with dozens of countries before the president's double-digit 'reciprocal' tariffs are slated to kick back in next month. 'To ease the sting of those tariffs on the auto sectors for Korea and Japan is of course a high priority for them,' said Michael Beeman, a former assistant U.S. trade representative who focused on Japan and South Korea. 'I think for those countries, to be able to declare success from the talks at home, they would expect some sort of consideration." The auto tariffs have already been a sticking point in negotiations with Japan and South Korea, both of which are invested in maintaining a high level of domestic auto manufacturing. Auto exports from South Korea to the U.S. have exploded over the past 20 years, from $8.7 billion in 2005 to $37.3 billion in 2024, according to data collected by the Census Bureau. Japanese Prime Minister Shigeru Ishiba has said publicly that any trade deal with Japan would have to result in lower auto tariffs. Now, as the two countries are on their fifth round of talks, with a planned meeting between Ishiba and Trump at the G7 in Canada in two weekends, both countries are projecting optimism about a deal. "I think we'll also need to address, at a minimum, the auto [Section] 232 tariffs,' said Wendy Cutler, a former negotiator with the U.S. trade representative's office and the vice president at the Asia Society Policy Institute, said when asked what it would take to get a deal with Japan. Cutler said any deal with Japan or South Korea could have a lower tariff for a certain number of vehicles, similar to the deal with the U.K. Or, 'they could also just be very vague and say that the U.S. notes Japan's concern on the auto tariffs, and both sides agree to negotiate possible lowering of the tariffs in this detailed negotiation to follow," she said. Trump has already agreed to lower tariffs on automobiles once. In his first trade agreement since imposing a global 10 percent tariff on nearly every U.S. trading partner and potentially higher rates on more than 60 countries, Trump struck an agreement with the U.K. that would allow the country to ship 100,000 vehicles into the country at a 10 percent tariff — lower than the current 25 percent tariff on automobiles and auto parts. The deal drew condemnation from American automakers, who noted that it meant a lower tariff on cars imported from the U.K. than on North American-made cars that include U.S.-made parts. They expressed concern that lowering tariffs with major auto manufacturing countries like Japan, South Korea and Germany would make it more expensive to build cars with parts from North America — creating an unfair playing field and effectively undercutting the administration's effort to boost domestic auto manufacturing. Vehicles made across the integrated North American supply chain still face a 25 percent tariff on non-U.S. made content, even if the vehicle is compliant with the U.S.-Mexico-Canada trade agreement that Trump negotiated in his first term. The Trump administration has continued to press foreign automakers to move production to the U.S. Last week, Trump met with German automakers, who offered $100 billion in investment in the U.S., according to Commerce Secretary Howard Lutnick. Trump — and Republicans on Capitol Hill — say those commitments are a sign that tariffs are working. "They make BMWs in South Carolina, Volvo. They make Mercedes in Alabama,' Sen. Lindsey Graham (R-S.C.) pointed out during a Senate Appropriations Committee hearing Wednesday. Under Trump, 'They're talking about making the engine now in South Carolina. They're talking about more content in South Carolina.' There has yet to be an uptick in U.S. auto manufacturing, however, a reminder that the investment pledges will take years to fully develop. Auto manufacturing jobs held steady between April and May, though there were 2,240 fewer auto manufacturing jobs in May, compared to 2024, according to the Bureau of Labor Statistics. While welcoming the announcements, the Trump White House has given no indication the investment pledges will convince the president to lower auto tariffs on foreign countries. 'I mean, unless somebody shows me that there's another kind of a car that's comparable to a Rolls-Royce,' Trump said in May, 'and there aren't too many.'
Politico
14 hours ago
- Automotive
- Politico
Trump may have to choose: Making trade deals or keeping his car tariffs
President Donald Trump is telling domestic audiences he won't cut his 25 percent tariffs on foreign cars as part of any trade deals he negotiates. But other countries — who collectively send millions of vehicles to the U.S. each year — haven't gotten that message. Trading partners like the EU, Japan and South Korea are laboring under the impression that the auto tariffs, which Trump imposed in April, are still on the table, according to two people familiar with the talks between Trump officials and those countries, granted anonymity to discuss private conversations. If Trump is really unwilling to lower or eliminate his tariffs on foreign cars, it could prove to be a major hurdle to securing meaningful trade deals with some of the country's top trading partners. Japan, South Korea and Germany sold more than $121 billion in cars and car parts in the U.S. in 2024. The White House did not answer when asked if auto tariffs were on the table for negotiations and instead reiterated the goal of the tariffs. 'No president has taken a greater interest in reviving America's once-dominant auto industry than President Trump, and the auto industry is a key focus of the Trump administration's trade and economic policies,' said Kush Desai, a White House spokesperson. 'Discussions with our major trading partners continue, and the Trump administration continues to seek better trade deals for American industries and workers.' A decision to lift the tariffs for more countries, particularly those whose companies compete most fiercely with American carmakers, risks alienating a powerful manufacturing bloc and undercutting a central tenet of Trump's trade agenda — forcing companies to build more products in the U.S. The Trump administration has assured American automakers that when it comes to auto tariffs being used as a bargaining chip, they have 'nothing to worry about,' according to a person familiar with discussions between the administration and Detroit's 'Big Three' auto companies, granted anonymity because of the sensitive nature of the talks. Trump has said a deal to lower the tariff on a small number of British cars, announced last month, was an exception. 'I won't do that deal with cars' for other countries, Trump said when announcing the terms of negotiation with the U.K. on May 8. The British auto brand Rolls-Royce is 'a very special car and it's a very limited number too. It's not one of the monster car companies that makes millions of cars,' he noted. Even that agreement, which lowered the tariff on 100,000 cars, less than 1 percent of total U.S. annual car sales, drew a sharp rebuke from U.S. automakers. 'This hurts American automakers, suppliers, and auto workers,' the American Automotive Policy Council, which represents General Motors, Ford and Stellantis, said at the time, saying they hoped it 'does not set a precedent for future negotiations with Asian and European competitors.' The tension between the two goals — boosting domestic auto production while also negotiating delicate agreements to lower trade barriers — highlights the challenge facing the administration as it races to secure deals with dozens of countries before the president's double-digit 'reciprocal' tariffs are slated to kick back in next month. 'To ease the sting of those tariffs on the auto sectors for Korea and Japan is of course a high priority for them,' said Michael Beeman, a former assistant U.S. trade representative who focused on Japan and South Korea. 'I think for those countries, to be able to declare success from the talks at home, they would expect some sort of consideration.' The auto tariffs have already been a sticking point in negotiations with Japan and South Korea, both of which are invested in maintaining a high level of domestic auto manufacturing. Auto exports from South Korea to the U.S. have exploded over the past 20 years, from $8.7 billion in 2005 to $37.3 billion in 2024, according to data collected by the Census Bureau. Japanese Prime Minister Shigeru Ishiba has said publicly that any trade deal with Japan would have to result in lower auto tariffs. Now, as the two countries are on their fifth round of talks, with a planned meeting between Ishiba and Trump at the G7 in Canada in two weekends, both countries are projecting optimism about a deal. 'I think we'll also need to address, at a minimum, the auto [Section] 232 tariffs,' said Wendy Cutler, a former negotiator with the U.S. trade representative's office and the vice president at the Asia Society Policy Institute, said when asked what it would take to get a deal with Japan. Cutler said any deal with Japan or South Korea could have a lower tariff for a certain number of vehicles, similar to the deal with the U.K. Or, 'they could also just be very vague and say that the U.S. notes Japan's concern on the auto tariffs, and both sides agree to negotiate possible lowering of the tariffs in this detailed negotiation to follow,' she said. Trump has already agreed to lower tariffs on automobiles once. In his first trade agreement since imposing a global 10 percent tariff on nearly every U.S. trading partner and potentially higher rates on more than 60 countries, Trump struck an agreement with the U.K. that would allow the country to ship 100,000 vehicles into the country at a 10 percent tariff — lower than the current 25 percent tariff on automobiles and auto parts. The deal drew condemnation from American automakers, who noted that it meant a lower tariff on cars imported from the U.K. than on North American-made cars that include U.S.-made parts. They expressed concern that lowering tariffs with major auto manufacturing countries like Japan, South Korea and Germany would make it more expensive to build cars with parts from North America — creating an unfair playing field and effectively undercutting the administration's effort to boost domestic auto manufacturing. Vehicles made across the integrated North American supply chain still face a 25 percent tariff on non-U.S. made content, even if the vehicle is compliant with the U.S.-Mexico-Canada trade agreement that Trump negotiated in his first term. The Trump administration has continued to press foreign automakers to move production to the U.S. Last week, Trump met with German automakers, who offered $100 billion in investment in the U.S., according to Commerce Secretary Howard Lutnick. Trump — and Republicans on Capitol Hill — say those commitments are a sign that tariffs are working. 'They make BMWs in South Carolina, Volvo. They make Mercedes in Alabama,' Sen. Lindsey Graham (R-S.C.) pointed out during a Senate Appropriations Committee hearing Wednesday. Under Trump, 'They're talking about making the engine now in South Carolina. They're talking about more content in South Carolina.' There has yet to be an uptick in U.S. auto manufacturing, however, a reminder that the investment pledges will take years to fully develop. Auto manufacturing jobs held steady between April and May, though there were 2,240 fewer auto manufacturing jobs in May, compared to 2024, according to the Bureau of Labor Statistics. While welcoming the announcements, the Trump White House has given no indication the investment pledges will convince the president to lower auto tariffs on foreign countries. 'I mean, unless somebody shows me that there's another kind of a car that's comparable to a Rolls-Royce,' Trump said in May, 'and there aren't too many.'
Yahoo
14-05-2025
- Business
- Yahoo
Trump's trade war wins so far: More talk, uncertainty and deadlines
More than a month after President Donald Trump's tariff-focused 'Liberation Day,' just about all America has won is more deadlines and assurances of ongoing talks. With China, the U.S. has secured no major changes other than offsetting step-downs of recent import duties and import restrictions. And an accord with the U.K., announced last Wednesday, offered little beyond improved access for U.S. meats and ethanol. The White House has said both agreements are starting points. While it's been enough to soothe international markets and restore U.S. stock gains, the Trump administration has little to show in the way of concessions gained from the agreements. The U.K. agreement saw British businesses win clear concessions from the Trump administration, including lower U.S. trade barriers for its vehicles, steel and aluminum products. Less clear were the immediate gains for America. Though the pact touted improved access to U.K. markets for American meat producers, methods of meat preparation common in the U.S. are banned in the U.K. — a stance it is not expected to change. Meanwhile, representatives for American auto firms — which have already struggled to navigate Trump's tariffs — issued a rare statement blasting the deal. 'We are disappointed that the administration prioritized the U.K. ahead of our North American partners,' Matt Blunt, president of the American Automotive Policy Council, said in a statement. But the deal announcements kept coming. Days later, representatives from the U.S. and China said they had agreed to temporarily lower reciprocal tariffs, which had reached more than 120%. Again, the announcement was met with questions about its success. Capital Economics, a Wall Street consultancy, called it 'another substantial retreat from the Trump administration's aggressive stance.' The firm said in a note to clients that the deal does not include 'any commitments by China on exchange rate policy or the bilateral trade imbalance.' 'They stood their ground,' Marcus Noland, an economist and senior fellow at the Peterson Institute for International Economics, said of China. 'They faced the bully and the United States backed down without any major concession.' China has hailed the outcome of its negotiations, saying its resistance to Trump's tariffs had been 'very effective.' 'The retaliatory measures have indeed had a significant impact on the U.S. side, which is why the U.S. government lowered the tariffs to the baseline level after the talks,' a social media account linked to China's national broadcaster CCTV said Monday. In a statement, a White House representative continued to hail the agreements while hinting that more progress was forthcoming. White House officials have also noted that recent economic data, like jobs and inflation, has continued to be solid. 'Thanks to President Trump's tariffs and dealmaking, the U.K. has opened up billions in export opportunities for American ranchers and farmers while China has agreed to expand market access for American companies,' White House spokesperson Kush Desai said. 'And this is just the beginning, with many more deals and opportunities for American workers and farmers ahead.' Trump has also touted the ability of tariffs to raise revenues. In April, the first full month that most of Trump's tariffs would have gone into effect, tariff income topped $16 billion, CNBC reported. While that is a record, it hardly dents the federal deficit, which totaled $1.05 trillion, 13% higher than a year ago. Net interest alone cost $38 billion on the month and is now $579 billion for the current fiscal year. At the same time, the tariffs that Trump has argued would generate significant revenues and encourage U.S. companies to bring production back to the U.S. are now being scaled back. Analysts warn that even as markets have responded positively to the overall set of developments, they risk being lulled into complacency given ongoing tensions and stumbling blocks. As part of the U.K. agreement, the U.S. insisted that it reduce its reliance on Chinese supply chains — something China denounced in a Tuesday Financial Times report. 'I think we're in for a lot more turbulence and a lot more back-and-forth than the markets seem to grasp,' Noland said. This article was originally published on
NBC News
14-05-2025
- Business
- NBC News
Trump's trade war wins so far: More talk, uncertainty and deadlines
More than a month after President Donald Trump 's tariff-focused 'Liberation Day,' just about all America has won is more deadlines and assurances of ongoing talks. With China, the U.S. has secured no major changes other than offsetting step-downs of recent import duties and import restrictions. And an accord with the U.K., announced last Wednesday, offered little beyond improved access for U.S. meats and ethanol. The White House has said both agreements are starting points. While it's been enough to soothe international markets and restore U.S. stock gains, the Trump administration has little to show in the way of concessions gained from the agreements. The U.K. agreement saw British businesses win clear concessions from the Trump administration, including lower U.S. trade barriers for its vehicles, steel and aluminum products. Less clear were the immediate gains for America. Though the pact touted improved access to U.K. markets for American meat producers, methods of meat preparation common in the U.S. are banned in the U.K. — a stance it is not expected to change. Meanwhile, representatives for American auto firms — which have already struggled to navigate Trump's tariffs — issued a rare statement blasting the deal. 'We are disappointed that the administration prioritized the U.K. ahead of our North American partners,' Matt Blunt, president of the American Automotive Policy Council, said in a statement. But the deal announcements kept coming. Days later, representatives from the U.S. and China said they had agreed to temporarily lower reciprocal tariffs, which had reached more than 120%. Again, the announcement was met with questions about its success. Capital Economics, a Wall Street consultancy, called it 'another substantial retreat from the Trump administration's aggressive stance.' The firm said in a note to clients that the deal does not include 'any commitments by China on exchange rate policy or the bilateral trade imbalance.' 'They stood their ground,' Marcus Noland, an economist and senior fellow at the Peterson Institute for International Economics, said of China. 'They faced the bully and the United States backed down without any major concession.' China has hailed the outcome of its negotiations, saying its resistance to Trump's tariffs had been 'very effective.' 'The retaliatory measures have indeed had a significant impact on the U.S. side, which is why the U.S. government lowered the tariffs to the baseline level after the talks,' a social media account linked to China's national broadcaster CCTV said Monday. In a statement, a White House representative continued to hail the agreements while hinting that more progress was forthcoming. White House officials have also noted that recent economic data, like jobs and inflation, has continued to be solid. 'Thanks to President Trump's tariffs and dealmaking, the U.K. has opened up billions in export opportunities for American ranchers and farmers while China has agreed to expand market access for American companies,' White House spokesperson Kush Desai said. 'And this is just the beginning, with many more deals and opportunities for American workers and farmers ahead.' Trump has also touted the ability of tariffs to raise revenues. In April, the first full month that most of Trump's tariffs would have gone into effect, tariff income topped $16 billion, CNBC reported. While that is a record, it hardly dents the federal deficit, which totaled $1.05 trillion, 13% higher than a year ago. Net interest alone cost $38 billion on the month and is now $579 billion for the current fiscal year. At the same time, the tariffs that Trump has argued would generate significant revenues and encourage U.S. companies to bring production back to the U.S. are now being scaled back. Analysts warn that even as markets have responded positively to the overall set of developments, they risk being lulled into complacency given ongoing tensions and stumbling blocks. As part of the U.K. agreement, the U.S. insisted that it reduce its reliance on Chinese supply chains — something China denounced in a Tuesday Financial Times report. 'I think we're in for a lot more turbulence and a lot more back-and-forth than the markets seem to grasp,' Noland said.
Auto Blog
13-05-2025
- Automotive
- Auto Blog
U.S. Makes Revised Deal Slashing Import Tariffs for U.K. Automakers
Trump cuts U.K. automakers some slack The U.S. and the U.K. have confirmed a limited trade deal to reduce tariffs on U.K. vehicle imports from 27.5% to 10%. Discounted levies on auto part imports are not part of the agreement, and the decreased tariffs have a limit of 100,000 cars annually. Jaguar Land Rover, which sends the most vehicles to the U.S. out of any automaker, sold about 95,000 cars last year in the U.S., according to The New York Times. The U.K. as a whole exported around 102,000 total cars to the U.S. in 2024, according to Automotive Logistics. In April, Jaguar Land Rover announced it was pausing shipments to the U.S. because of tariff impacts, but resumed vehicle exports earlier this week. The Trump administration is also cutting U.K. steel and aluminum import tariffs from 25% to 0% with quotas, which have yet to be announced, and will allow Rolls-Royce to export engines and plane parts into the U.S. tariff-free. In return, the U.K. slashed its 19% tariff on imported ethanol from the U.S. to 0%. Since 2021, the U.K.'s standard unleaded fuel, E10 petrol, has contained up to 10% ethanol. Previous Pause Next Unmute 0:00 / 0:10 Audi A5 replaces A4: So, what's changed? Watch More President Trump listens as Britain's Prime Minister Keir Starmer speaks to him on the phone — Source: Getty 'Big three' U.S. automakers fume over U.K. deal When finalized, the tariff reduction deal will be the U.S.'s first of its kind with another nation, and some domestic automakers aren't happy about it. 'The U.S. automotive industry is highly integrated with Canada and Mexico; the same is not true for the U.S. and the U.K. We are disappointed that the administration prioritized the U.K. ahead of our North American partners,' said American Automotive Policy Council President Matt Blunt. The council represents the U.S.' 'big three' automakers; Ford, Stellantis, and General Motors (GM). Current tariff policy states that USMCA-compliant (United States-Mexico-Canada Agreement) auto parts are temporarily exempt from tariffs, but USMCA-compliant vehicles imported into the U.S. from Canada and Mexico face tariffs on their non-U.S. content. Matt Blunt added: '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.' Cars are the U.K.'s largest export to the U.S., worth around £9 billion ($11.9 billion) in 2024, according to the BBC. 'The car industry is vital to the U.K.'s economic prosperity, sustaining 250,000 jobs. We warmly welcome this deal which secures greater certainty for our sector and the communities it supports,' Jaguar Land Rover CEO Adrian Mardell said according to Ars Technica. Final thoughts American Automotive Policy Council President Matt Blunt is unsurprisingly dissatisfied with the President's prioritization of foreign automakers over domestic ones. A portion of Blunt's release read: 'We hope this preferential access for U.K. vehicles over North American ones does not set a precedent for future negotiations with Asian and European competitors.' Still, the U.K.-U.S. deal is more symbolic, as it will likely have a limited impact. Most U.K. automakers, such as Jaguar Land Rover, operate at the higher end of the pricing spectrum, restricting their overall U.S. market presence despite strong sales in the luxury segment. Autoblog Newsletter Autoblog brings you car news; expert reviews and exciting pictures and video. Research and compare vehicles, too. Sign up or sign in with Google Facebook Microsoft Apple By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime.
