After imposing a 25 percent tariff on imported automobiles and certain parts and materials earlier this year, President Donald Trump has used those levies as negotiating tool as he tries to hammer out new trade deals with a variety of nations. Trump reached a new deal with the UK in May, which drew the ire of the Ford-backed lobby group known as the American Automotive Policy Council, due to the fact that it views deals with Canada and Mexico as far more pressing. Now, that same group is criticizing Trump’s latest trade deal with Japan for the same sorts of reasons.
“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,” said Matt Blunt, head of the American Automotive Policy Council, according to Automotive News. The trade deal would impose lower tariffs of 15 percent on autos imported from Japan, while Canada and Mexico remain at 25 percent for now.
In addition to lowering tariffs on imported autos coming from Japan, the trade deal also reportedly involves a $550 billion dollar investment in the U.S. on Japan’s part, with Trump adding that the country has agreed to “open their country” to U.S. auto and agricultural imports. Isuzu Motors announced a $280 million investment in a new facility in South Carolina amid these talks, while Toyota has committed $88 million to boost hybrid production, too.
Meanwhile, automakers remain concerned about tariffs placed on Canada and Mexico, given the large number of vehicles built in those countries that are subsequently sold in the U.S., as well as parts and other items subjected to levies. Ford builds a trio of models in Mexico currently, and may soon be forced to raise EV prices after the Trump administration plans to impose a 93.5 percent tariff on graphite coming from China, which almost exclusively comes from that part of the world and is used in the batteries that power nearly all EVs sold in the U.S.
Comments
Trump not supporting the US vehicle industry shows how poorly he understands trade and the industry. Then putting a 93.5% tariff on a product that the American car market needs to make batteries from the only place you can get it also shows how badly he understands trade and what to put tariffs on. He is doing more damage than good. Also he thinks the importer pays the tariffs but actually the cost of the tariffs is passed on to the consumer through higher prices. Not as bright as he thinks he is. And then there is the people that support him…… think about it!!!!!!
I am confused. Didn’t Japan just agree to take our cars? Isn’t that good?
If Ford doesn’t like this then maybe they should look at why they have more recalls than any other car company in history.
The Japanese don’t want our cars. Too big, too expensive, and too unreliable. 35% of new car purchases in Japan are Kei cars, which we don’t even make. Being able to sell American cars tariff free in Japan means nothing, there is no consumer demand for them. Something president felon doesn’t seem to comprehend.