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Auto Blog
6 days ago
- Automotive
- Auto Blog
Why Detroit Automakers Are Blasting U.S.' Tariff Deal With Japan
Japan's U.S. trade deal leaves Detroit's Big Three fuming The U.S. has agreed to lower the tariff rate on Japan's auto exports to 15%, and a group representing General Motors (GM), Ford, and Stellantis has sounded off. Matt Blunt, head of the American Automotive Policy Council (AAPC) representing these Detroit manufacturers, stated: 'Any deal that charges a lower tariff for Japanese imports with virtually no U.S. content than the tariff imposed on North American built vehicles with high U.S. content is a bad deal for U.S. industry and U.S. auto workers,' Reuters reports. Trump has also floated increasing tariffs on Mexico and Canada to 30% and 35%, respectively, by August 1. The AAPC similarly criticized the U.S. for agreeing to a 10% tariff rate on Britain's first 100,000 annual vehicle exports to America. UAW Local 372 in Trenton, Michigan — Source: Getty However, the AAPC wasn't the only organization that spoke out against the Trump administration's deal with Japan. The United Auto Workers (UAW) union said in a post on X, formerly Twitter: 'The UAW is deeply angered by the Trump administration's announced trade deal with Japan. What we've seen so far makes one thing clear: American workers are once again being left behind.' This group added that the deal rewards transnational automakers that rely on low-road labor practices, which include substandard wages, excessive temps, and union-busting. Detroit's 'Big Three' automakers are already under financial pressure from tariffs. GM shared this week that it suffered $1.1 billion in tariff-related losses during Q2, with Q3's forecast appearing worse. Stellantis' tariff losses so far are less, but still hefty at about $352 million. Like GM, Stellantis anticipates that tariffs will further erode profits during the second half of 2025. Ford has anticipated a $1.5 billion financial hit from tariffs this year. How Japan's trade agreement could eventually benefit U.S. automakers While Japan's deal doesn't immediately benefit Detroit Three companies like Ford, which assembled over 80% of its vehicles in the U.S. last year, it could pay dividends in the long run. As part of its tariff agreement with the Trump administration, Japan agreed to provide the U.S. with greater access to its auto market. In March, Cadillac said it was introducing right-hand-drive electric vehicles (EVs) and promised a complete lineup of EVs in Japan, according to The Detroit News. President Trump posted on Truth Social: 'Remember, Japan is, for the first time ever, OPENING ITS MARKET TO THE USA, even to cars, SUVs, Trucks, -and everything else, even agriculture and RICE, which was always a complete NO, NO.' Despite the AAPC clearly expressing its feelings about Japan's trade deal, U.S. Commerce Secretary Howard Lutnik stated that he spoke with CEOs whose companies are represented by the group, and said, 'They are cool with it,' CNBC reports. A car hauler crossing the Ambassador Bridge between Windsor, Canada and Detroit, Michigan — Source: Getty Final thoughts Japan's trade agreement with the U.S. offers domestic benefits, including a $550 billion investment in American industries such as automotive manufacturing, $150 billion more than the initially requested amount, and increased access to Japan's car market, which could become a priority for Detroit's Big Three. Still, major U.S. automakers like GM, Ford, and Stellantis have a right to be upset as they wait for Canada and Mexico negotiations to conclude and hear President Trump threatening increased tariffs on both countries that could significantly impact USMCA (United States-Mexico-Canada Agreement) manufacturing. About the Author Cody Carlson View Profile
Wall Street Journal
6 days ago
- Automotive
- Wall Street Journal
The UAW Gets a Protectionist Lesson
Those who prosper by government protection can quickly end up suffering from it. The latest example is President Trump's trade deal with Japan, which has U.S. auto makers and United Auto Workers (UAW) President Shawn Fain up in arms—and they have a point. Mr. Trump in April slapped 25% tariffs on autos and parts with exemptions for U.S.-made content. Mr. Fain cheered. But under the Japan deal, Japanese-made cars will pay a tariff of 15%, which is lower than the 25% on imports from Canada and Mexico. Because American auto plants rely heavily on parts from Canada and Mexico, the tariff cost on U.S.-made cars could be larger than on Japanese imports. A mooted deal with the European Union would also apply a 15% tariff on its car exports to the U.S. Mr. Fain is now grousing that the Japan deal 'hands a win to transnational automakers.' The lobby for U.S. car makers also isn't happy, saying in a statement that 'any deal that charges a lower tariff for Japanese imports with virtually no U.S. content than the tariff imposed on North American built vehicles with high U.S. content is a bad deal for U.S. industry and U.S. auto workers.'
Fast Company
7 days ago
- Automotive
- Fast Company
U.S. automakers voice concerns over Trump's 15% tariff deal with Japan
U.S. automakers worry that President Donald Trump's agreement to tariff Japanese vehicles at 15% would put them at a competitive disadvantage, saying they will face steeper import taxes on steel, aluminum and parts than their competitors. 'We need to review all the details of the agreement, but this is a deal that will charge lower tariffs on Japanese autos with no U.S. content,' said Matt Blunt, president of the American Automotive Policy Council, which represents the Big 3 American automakers, General Motors, Ford and Jeep-maker Stellantis. Blunt said in an interview the U.S. companies and workers 'definitely are at a disadvantage' because they face a 50% tariff on steel and aluminum and a 25% tariff on parts and finished vehicles, with some exceptions for products covered under the United States-Mexico-Canada Agreement that went into effect in 2020. The domestic automaker reaction reveals the challenge of enforcing policies across the world economy, showing that for all of Trump's promises there can be genuine tradeoffs from policy choices that risk serious blowback in politically important states such as Michigan and Wisconsin, where automaking is both a source of income and of identity. The United Auto Workers said in a statement it was 'deeply angered' by the deal. 'A better deal would have held Japanese automakers to the same standards U.S. workers have fought for at GM, Ford, and Stellantis,' the UAW said. 'If this becomes the blueprint for trade with Europe or South Korea, it will be a major missed opportunity,' the union added. 'We need trade deals that raise standards — not reward the race to the bottom. This deal does the opposite.' Trump portrayed the trade framework as a major win after announcing it on Tuesday, saying it would add hundreds of thousands of jobs to the U.S. economy and open the Japanese economy in ways that could close a persistent trade imbalance. The agreement includes a 15% tariff that replaces the 25% import tax the Republican president had threatened to charge starting on Aug. 1. Japan would also put together $550 billion to invest in U.S. projects at the 'direction' of the president, the White House said. The framework with Japan will remove regulations that prevent American vehicles from being sold in that country, the White House has said, adding that it would be possible for vehicles built in Detroit to be shipped directly to Japan and ready to be sold. But Blunt said that foreign auto producers, including the U.S., Europe and South Korea, have just a 6% share in Japan, raising skepticism that simply having the open market that the Trump administration says will exist in that country will be sufficient. 'Tough nut to crack, and I'd be very surprised if we see any meaningful market penetration in Japan,' Blunt said. Asked at Wednesday's briefing about whether Trump's sectoral tariffs such as those on autos were now subject to possible change, White House press secretary Karoline Leavitt said that the issue had been going through the Commerce Department. The framework with Japan was also an indication that some nations simply saw it as preferential to have a set tariff rate rather than be whipsawed by Trump's changes on import taxes since April. But for the moment, both Japan and the United Kingdom with its quotas on auto exports might enjoy a competitive edge in the U.S. 'With this agreement in place it provides Japan with a near-term operating cost advantage compared to other foreign automakers, and even some domestic U.S. product that uses a high degree of both foreign production and parts content,' said Karl Brauer, executive analyst at iSeeCars. 'It will be interesting to see if this is the first domino to fall in a series of foreign countries that decide long-term stability is more important that short term disputes over specific tariff rates.' Autos Drive America, an organization that represents major Japanese companies Toyota, Honda and Nissan and other international automakers, said in a statement that it is 'encouraged' by the announced trade framework and noted its members have exceeded domestic automaker production for the past two years. The statement urged 'the Trump administration to swiftly reach similar agreements with other allies and partners, especially the European Union, South Korea, Canada and Mexico.' The Japanese framework could give automakers and other countries grounds for pushing for changes in the Trump administration's tariffs regime. The president has previously said that he values flexibility in negotiating import taxes. The USMCA is up for review next year. Ford, GM and Stellantis do 'have every right to be upset,' said Sam Fiorani, vice president at consultancy AutoForecast Solutions. But 'Honda, Toyota, and Nissan still import vehicles from Mexico and Canada, where the current levels of tariffs can be higher than those applied to Japanese imports. Most of the high-volume models from Japanese brands are already produced in North America.' Fiorani noted that among the few exceptions are the Toyota 4Runner, the Mazda CX-5 and the Subaru Forester, but most of the other imports fill niches that are too small to warrant production in the U.S. 'There will be negotiations between the U.S. and Canada and Mexico, and it will probably result in tariffs no higher than 15%,' Fiorani added, 'but nobody seems to be in a hurry to negotiate around the last Trump administration's free trade agreement.'
Axios
07-07-2025
- Politics
- Axios
Trail Mix: Papers of record weigh in as controversies crop up
Welcome back to our weekly roundup of election news! The Aug. 5 primary is fast approaching and absentee voting began last month. City Council president and mayoral candidate Mary Sheffield was the subject of discussion last week over a Free Press column questioning her use of tax dollars for birthday cards, as well as a logo mix-up that gained traction on social media. We're looking a bit closer at the UAW logo issue: A flyer for an event featuring Sheffield surfaced, using the UAW logo, despite the fact that the UAW didn't endorse her; instead, they chose the Rev. Solomon Kinloch Jr. The flyer was shared on Sheffield's Instagram story but then deleted, per the Michigan Chronicle. The UAW issued a statement reiterating it selected Kinloch, saying "Sheffield knows this," and that the campaign "improperly" used the logo and "cast confusion". However, the Sheffield campaign didn't create the flyer — it was created by the UAW members supporting Sheffield, UAW member Lynda Shari Jackson commented on the UAW's statement on Facebook and told media. Jackson wrote that "this whole thing has been blown outta proportion." "We respect the right of UAW Local 7 and 51 members to show support independently, and … this initiative was not organized by our campaign," Sheffield said in a statement. The bottom line: The UAW's endorsement is weighty, but still, members can vote for who they wish. Videos surface: Mayoral candidate Jonathan Barlow 's name was in the news last week as he faced harassment claims over viral social media videos depicting a late-night interaction between him and a group of women. A BridgeDetroit article details the occurrence, with the women's side of the story as well as Barlow's. Papers weigh in: The Free Press chose to endorse Sheffield in the mayoral primary, writing that her plans were "the most clear and precise" and her time in office shows she can make things happen. "She's made no bones about asking our corporate community to do more, but can passionately argue why that's in business' best interest." Meanwhile, the Detroit News endorsed former City Council president and nonprofit CEO Saunteel Jenkins — a notable choice, as some consider Sheffield and Kinloch the two most likely to advance through the primary. Jenkins' campaign and other observers still view the second general election slot as highly winnable.
Yahoo
01-07-2025
- Automotive
- Yahoo
The 2025 Corvette ZR1 May Be Even More Rare Than We First Thought
Chevrolet's Corvette ZR1 is a revolution for American sports cars, packing power and performance figures that not long ago were the province of foreign exotica — but a new report indicates that the first batch to roll off the line for the 2025 model year may arrive in even more limited numbers than we first suspected. According to CorvetteBlogger, Chevrolet's model year swap between 2025 and 2026 Corvettes is scheduled to take place on August 4 —which means the company has a little over a month to churn out the MY25 ZR1s. But while General Motors reportedly has taken 310 orders into its system for the 1064-hp twin-turbo 'Vette, all for its inaugural model year, a mere 65 units have reportedly been built since production kicked off at the end of April. Further complicating matters: the Corvette's storied Bowling Green, Kentucky, plant is set to close for a summer break after Friday, July 4, and won't re-open until July 14. That leaves UAW workers in Kentucky just 15 days to build more than 240 Corvette ZR1s, a feat that Chevrolet, reportedly, doesn't believe is possible. At least, that's what the automaker signaled to dealers according to an email CorvetteBlogger says it obtained. The email reportedly states that the automaker cannot commit to building all 310 units in the order system in that time, and that any 2025 ZR1 orders that are at 3000 Status (signifying the order has been accepted by production control) or below will need to be resubmitted as 2026 model year orders. There's independent evidence to back this up, too. Corvette enthusiast and data mapper Roger Kiel has taken it upon himself to track the production of the C8-generation Corvette and posting his findings in Corvette-dedicated Facebook groups; the latest version shows an average daily production rate of two or three ZR1 units each day. This indicates that around 100 ZR1 units are likely to be built by the time of the model year switchover in early August. So, what's the big deal? Well, in addition to a revamped interior design, the new model carries a $7200 price bump versus 2025 model year ZR1s, in addition to a destination fee increase of $100. Another added complication is the way ZR1 allocations flow. One order cycle of the 2026 model year C8 Corvette has already come and gone, but no ZR1 units were reportedly allocated — hence why all 300-ish orders taken so far have been for MY25 cars. That means these ousted ZR1 buyers will have to wait for the next order cycle, and hope that it winds up offering some slots for the new hypercar-slaying C8. Clearly, C8 ZR1 production is still in its infancy, and prospective buyers will have to adjust their expectations accordingly. However, the transparent amount of performance on tap and the degree of American engineering pride exemplified by the ZR1 leads us to suspect most buyers will be more than willing to wait a little longer than they originally planned if that's the price for owning a 233-mph stock Corvette. You Might Also Like You Need a Torque Wrench in Your Toolbox Tested: Best Car Interior Cleaners The Man Who Signs Every Car
