The so-called Big 3 U.S. automakers — GM, Ford, and Stellantis-owned Chrysler — have additionally criticized Trump’s recent announcement of a trade deal with Japan, which they argue actually disadvantages American companies versus their Japanese competitors.
According to the publicly available framework of the deal, Japanese automakers can import their vehicles and components more cheaply (at a 15% tariff rate) than American automakers can import or build their own, due to Trump’s 50% tariffs on steel and aluminum, and 25% tariffs on auto parts and finished automobiles from their factories in neighboring Canada and Mexico.
The perverse incentives built into Trump’s trade and tariff plans were not lost on investors, as share prices for Japanese automakers spiked following the announcement. And on CNBC, contributor and former Ford CEO Mark Fields said that Japan came out ahead on its trade agreement framework with the Trump administration:
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