U.S. auto industry criticizes Japan-U.S. trade deal

A group representing Detroit's Big Three automakers expressed concerns on Tuesday about a trade deal between the United States and Japan that would reduce tariffs on cars imported from Japan to 15%, while keeping U.S. tariffs on cars imported from Canada and Mexico at 25%.

Matt Blunt, head of the American Automotive Policy Council (AAPC), which represents the Detroit Big Three automakers, said they are still evaluating the deal, but "any deal that imposes lower tariffs on Japanese imports with little to no U.S. content than on North American-made cars with high U.S. content is a bad deal for American industry and American auto workers."

Trump has threatened to raise tariffs on Mexico to 30% and Canada to 35% on August 1.

White House spokesman Kush Desai defended the deal, calling it "an historic victory for American automakers that ends Japan's unfair trade barriers against U.S.-made cars."

GM said Tuesday that its second-quarter results took a $1.1 billion hit from tariffs and that it expects the impact to worsen in the third quarter.

Stellantis said Monday that it expects U.S. tariffs on auto and auto parts imports to have a larger impact in the second half of 2025. The company reported that Trump's tariffs have cost it 300 million euros ($352 million) so far as it reduced vehicle shipments and cut some production to adjust manufacturing levels.

In May, the AAPC criticized Trump's announcement of a trade deal with the United Kingdom, saying it would hurt the U.S. auto industry.

British automakers will receive a quota of 100,000 vehicles per year that can be exported to the United States at a 10% tariff, almost as much as the United Kingdom exported last year.

"This hurts American automakers, suppliers and auto workers," the AAPC said.

In April, Trump softened the blow of auto tariffs by reducing the impact of tariffs on parts and materials, but still imposed a 25% tariff on imported cars.

He also extended duty-free exemptions for North American parts that meet the rules of origin of the U.S.-Mexico-Canada trade agreement.