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.
Interest-free financing and more on the coupe and convertible pony car.
Helping conduct what's known as a 'vacation check.'
A nicely finished machine, in general.
Pointing to growing sales of the automaker's EVs, in general.
Production is slated to end this month.
Only 12 percent of those sales came from the U.S.
