American auto companies are concerned about President Donald Trump Approval of the Japanese tariff 15 %, saying that they will face more import taxes on steel, aluminum and spare parts than their competitors.
Matt Blant, head of the American Automobile Policy Council, who represents the great American auto makers, General Motors, Ford and Jeep maker, car policy maker, who represents 3 American car makers, General Motors, Ford and a jeep maker, said, ”
“Certainly in a non -favorable position,” Blant said in an interview with American companies and workers 50 % tariffs on steel and aluminum and 25 % tariffs on the final parts and vehiclesWith some exceptions to the products covered by the United States and Mexico-Kanada agreement, which entered into force in 2020.
The local auto industry reaction reveals the challenge of implementing policies throughout the global economy, which indicates that all Trump’s promises can be real differentials of the policy options that It risks a dangerous reaction In politically important countries such as Michigan Weskonen, where cars are a source of income and identity alike.
Trump portrayed the commercial framework as a great victory after its announcement on Tuesday, saying that it will add hundreds of thousands of jobs to the American economy and open the Japanese economy in ways that could close the continuous trade balance. The White House said that the agreement includes a 15 % tariff that replaces import tax by 25 % that the Republican President threatened for accusation starting from August 1. Japan will also raise $ 550 billion to invest in American projects.
The White House said that the framework with Japan will remove the regulations that prevent the sale of American vehicles in that country, adding that it would be possible that the vehicles built in Detroit will be charged directly to Japan and ready for sale.
But Plante said that foreign auto producers, including the United States, Europe and South Korea, have only a 6 % stake in Japan, which raises doubts that the presence of the open market that the Trump administration says will be in this country will be enough.
“Difficulty walnuts for cracking, and I will be very surprised if we see any meaning of the meaning of the market in Japan,” said Blant.
When asked to broke up on Wednesday about whether Trump’s sectoral tariffs like those in cars are now subject to potential change, White House press secretary Caroline Levitte said the case was going through the Trade Management.
The framework with Japan was also an indication that some countries have simply saw that it was preferred to have a specific tariff instead of being distinguished by Trump’s changes to import taxes since April. But at the present time, Japan and the United Kingdom may enjoy its categories about car exports to a competitive advantage in the United States
“With this applicable agreement, it provides Japan with the short -term operating costs feature compared to other foreign auto manufacturers, and even some local US products that use a high degree of foreign production and parts content,” said Karl Praor, the ISECARS CEO: “It will be interesting to know if this is the first Domino in a series of foreign countries that decide in the long term more important that short -term conflicts over specified tariff rates.”
Autos Drive America, an organization that represents the major Japanese companies Toyota, Honda, Nissan and other international auto manufacturers, said in a statement that they are “encouraged” through the declared commercial framework, and indicated that its members have been produced from local cars production over the past two years.
The statement said: “International car manufacturers have invested more than $ 124 billion in their American operations over the past thirty years, and the certainty of this agreement allows them to plan more investment, bring more production to our beaches and provide reasonable options for American consumers.” “Now, we urge the Trump administration to quickly reach similar agreements with allies and other partners, especially the European Union, South Korea, Canada and Mexico.”
There is a possibility that the Japanese frame will give car manufacturers and other countries to pressure for changes in the tariff tariff system in the Trump administration. The president previously said that flexibility in the tax negotiations of import is something that he appreciates. USMCA is up to review next year.
Sam Fiori, Vice President of AutoforeCast Solutions, said that Ford, GM and Stellantis “have all the right to discomfort.” But “Honda, Toyota and Nissan are still importing vehicles from Mexico and Canada, where the current levels of definitions can be higher than those applied to Japanese imports. Most of the large size models of Japanese brands are already produced in North America.”
Fioreni noticed that among the few exceptions, Toyota 4Runner, Mazda CX-5 and Subaru Forester, but most imports fill very small ports to ensure production in the United States
“There will be negotiations between the United States, Canada and Mexico, and it is likely to lead to a tariff of no more than 15 %, but no one is in a hurry to negotiate on the recent Trump administration’s free trade agreement,” Firiani added.
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Saint John contributed from Detroit.
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