U.S. Big Three Automakers
British Cars Imported at Lower Cost Than Big Three Vehicles
The U.S. automotive industry has strongly criticized President Donald Trump’s trade agreement with the United Kingdom, calling it a “preferential treatment for British-made cars.”
According to Reuters on May 8 (local time), the American Automotive Policy Council, which represents the Detroit-based Big Three automakers?Ford, General Motors (GM), and Stellantis?claimed, “This agreement allows British-made cars, which contain very few U.S.-made parts, to meet the United States-Mexico-Canada Agreement (USMCA) rules of origin, which require that half of the parts be made in the U.S., and thus be imported at a lower cost than Big Three vehicles coming from Mexico and Canada.”
The council further expressed concern, stating, “This harms U.S. automakers, parts suppliers, and automotive workers.”
Previously, the bilateral trade agreement included a provision to lower the U.S. tariff on British-made cars from the existing 25% to 10% for up to 100,000 vehicles per year. This figure is nearly identical to the annual number of cars the UK exports to the U.S. According to the Society of Motor Manufacturers and Traders (SMMT), the UK’s automobile exports to the U.S. in 2024 amounted to approximately 102,000 units.
In contrast, almost all other countries, including Mexico and Canada, still face a 25% tariff on automobiles.
U.S. automakers voiced concerns that this agreement could set a precedent for future trade deals that may disadvantage vehicles assembled in Canada and Mexico.
The American Automotive Policy Council pointed out, “We hope that this preferential access for British-made cars, which gives them an advantage over North American vehicles, will not become a precedent in future negotiations with Asian and European competitors.”
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