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- Big Three say new UK trade deal could undercut U.S. auto industry
Big Three say new UK trade deal could undercut U.S. auto industry
CDG News Alert (1 min. read)

Driving the news: Detroit's Big Three automakers are criticizing President Trump's new UK trade deal, warning it undermines the U.S. auto industry.
For context: Yesterday, President Trump struck a deal for British carmakers to receive a yearly quota of 100,000 vehicles that can enter the US at just 10% tariff—significantly lower than the 25% rate applied to Mexico, Canada, and most other countries.
The wrench: The American Automotive Policy Council points out that importing UK vehicles with minimal U.S. content will now be cheaper than bringing in cars from Mexico or Canada that contain about half American parts.
Why it matters: GM, Ford, and Stellantis fear this could become a template for future trade agreements, potentially weakening their competitive position.
What we're watching: Trump did soften some auto tariffs last month by easing duties on parts and materials while extending duty-free status for North American parts meeting USMCA rules. However, the 25% tariff on imported vehicles remains, and automakers worry the UK's special treatment could set a problematic precedent for upcoming negotiations with Asian and European competitors.
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