Latest news with #AmericanAutomotivePolicyCouncil
CNBC
7 days ago
- Automotive
- CNBC
Trump Commerce Sec. Lutnick says U.S. auto CEOs are 'cool with' higher tariffs than Japan
Commerce Secretary Howard Lutnick said Thursday that American auto CEOs told him they are "cool with" President Donald Trump's new trade deal, which could put lower tariffs on cars imported from Japan than on cars made by U.S. companies in Canada and Mexico. Lutnick brushed off complaints from a group representing General Motors, Ford and Stellantis that Trump's plan could give Japanese automakers an advantage over the "Big Three" Detroit car companies. "Oh my God, that's just so silly," Lutnick said on CNBC's "Squawk on the Street" after being asked about criticism by the American Automotive Policy Council. Trump on Tuesday announced an agreement that would see Japan accept a tariff of 15% on cars it exports to the U.S., in addition to pledging $550 billion in U.S. investments. But American auto companies will be on the hook for that 25% levy on cars they make in Canada and Mexico and import into the U.S. under tariffs imposed by Trump in April. Shares of Japanese auto brands Toyota, Honda, Nissan and Mazda soared on news of Trump's trade deal with Japan — but U.S. carmakers sounded alarms. "Any deal that charges a lower tariff for Japanese imports with virtually no U.S. content than the tariff imposed on North American-built vehicles with high U.S. content is a bad deal for U.S. industry and U.S. auto workers," said Matt Blunt, head of the American Automotive Policy Council, on Tuesday. Lutnick on Thursday told CNBC that "PR people" are "ginning up" discontent over the deal, and that the CEOs whose companies are represented by the group do not oppose the pact. "They are cool with it," Lutnick said, after noting he had spoken to the American car CEOs earlier Thursday. He said he understood that U.S. companies would be "a little bummed out" to see tariffs on imports of Japanese-built autos fall from 25% to 15%. But Luntnick said domestic auto companies could avoid paying tariffs on cars they build in Canada and Mexico by moving their manufacturing facilities to the United States. "Come on, there's no tariff if you build it in America," he said. "American manufacturers are going to do extremely well in America — as long as they build it in America. You build it in America, you're good," he said. Blunt did not immediately respond to CNBC's request for comment on Lutnick's remarks. Trump's tariffs have already taken a toll on the Big Three automakers. GM in May issued full-year guidance that included a $4 billion to $5 billion hit from tariffs. The company confirmed this week that tariffs cost it $1.1 billion in the second fiscal quarter of 2025. Stellantis on Monday said that it expects a nearly $2.7 billion net loss in the first half of the year, which is partly due to the effects of the tariffs.
Yahoo
24-07-2025
- Automotive
- Yahoo
Detroit automakers object to Trump's trade agreement with Japan
The trade group representing the traditional Big Three US automakers is objecting to the US agreement with Japan, saying it would be unfair to American automakers and parts suppliers. The trade agreement announced Tuesday by the Trump administration would place 15% tariffs on imports from Japan, including autos and auto parts. The American automakers claim that gives Japanese imports an unfair advantage over other imported vehicles, including those assembled in Mexico and Canada by US companies with a significant number of US parts. Most imported cars – including American cars made outside the United States – face a 25% base tariff rate. Switch Auto Insurance and Save Today! Affordable Auto Insurance, Customized for You The Insurance Savings You Expect Great Rates and Award-Winning Service 'American automakers still need to review the details of the US-Japan agreement, but any deal that charges a lower tariff for Japanese imports with virtually no US content than the tariff imposed on North American built vehicles with high US content is a bad deal for US industry and US auto workers,' said Matt Blunt, president of The American Automotive Policy Council, which represents General Motors, Ford and Stellantis (parent of Jeep, Ram, Dodge and Chrysler brands). Blunt told CNN on Wednesday that the automakers have expressed their concerns about Japan's agreement with the Trump administration, just as they had when a trade framework reached with UK lowered tariffs to 10% on some luxury cars built in England, such as the Rolls Royce, Bentleys, Land Rovers, Jaguars and Aston Martins. 'We said then, we didn't want that to become the precedent for other trade deals,' he said. The three automakers all referred requests for comment to AAPC. Japan exported 1.3 million cars to the United States last year, or about 8% of the US market, according to data from S&P Global Mobility. That's about half of the 2.5 million imported from Mexico, but just above Canada's 1.1 million. However, the Japanese automakers build most of the cars they sell in the United States in North America. Together, they built 3.3 million cars at US plants, far more than the vehicles they imported from Japanese plants. But auto plants in Canada and Mexico use far more US-made parts than those built in Japan. American auto parts manufactures shipped $35.8 billion in parts to Mexico and $28.4 billion to Canada in 2024, according to Commerce Department data, but only $1.5 billion to Japan. And US car part makers employ more than 500,000 Americans, nearly twice as many workers as US auto plants, according to Labor Department data. Japan imports few cars itself The United States, like most countries, has virtually no auto exports to Japan. Only 6% of cars sold in Japan are imports from other countries, Blunt said. 'Japan has been one of the most closed automotive markets in the world,' he said. President Donald Trump posted on his Truth social media platform Wednesday that 'Japan is, for the first time ever, OPENING ITS MARKET TO THE USA, even to cars, SUV's, Trucks.' But Blunt doesn't see that happening any time soon. 'We certainly share the president's objective of opening markets that are closed to US exports, but Japan is going to be a very tough nut to crack,' he said. Japan does not impose tariffs on the relatively limited number of US cars it imports, but Blunt said there are a number of technical barriers. For example, Japanese certification processes differ from US specifications, there are limited dealership opportunities and Japanese car buyers prefer Japanese cars. American automakers have also greatly moved away from the small car portion of the market that is the central to Japan auto sales. 'When we think about markets that present real opportunities for greater US exports, I don't think Japan is often on that list,' he said. Justin Wolfers, an economics professor at the University of Michigan, also questioned how many American cars the Japanese will ultimately buy. 'The fundamental problem is if you've ever been in Tokyo the cars are small and the roads are narrow,' Wolfers said. 'They don't drive American cars because they don't meet Japan's needs.' CNN's Matt Egan contributed to this report.
Yahoo
23-07-2025
- Automotive
- Yahoo
US automakers say Trump's 15% tariff deal with Japan puts them at a disadvantage
WASHINGTON (AP) — U.S. automakers worry that President Donald Trump's agreement to tariff Japanese vehicles at 15% would put them at a competitive disadvantage, saying they will face steeper import taxes on steel, aluminum and parts than their competitors. 'We need to review all the details of the agreement, but this is a deal that will charge lower tariffs on Japanese autos with no U.S. content,' said Matt Blunt, president of the American Automotive Policy Council, which represents the Big 3 American automakers, General Motors, Ford and Jeep-maker Stellantis. Blunt said in an interview the U.S. companies and workers 'definitely are at a disadvantage' because they face a 50% tariff on steel and aluminum and a 25% tariff on parts and finished vehicles, with some exceptions for products covered under the United States-Mexico-Canada Agreement that went into effect in 2020. The domestic automaker reaction reveals the challenge of enforcing policies across the world economy, showing that for all of Trump's promises there can be genuine tradeoffs from policy choices that risk serious blowback in politically important states such as Michigan and Wisconsin, where automaking is both a source of income and of identity. Trump portrayed the trade framework as a major win after announcing it on Tuesday, saying it would add hundreds of thousands of jobs to the U.S. economy and open the Japanese economy in ways that could close a persistent trade imbalance. The agreement includes a 15% tariff that replaces the 25% import tax the Republican president had threatened to charge starting on Aug. 1. Japan would also put together $550 billion to invest in U.S. projects at the 'direction' of the president, the White House said. The framework with Japan will remove regulations that prevent American vehicles from being sold in that country, the White House has said, adding that it would be possible for vehicles built in Detroit to be shipped directly to Japan and ready to be sold. But Blunt said that foreign auto producers, including the U.S., Europe and South Korea, have just a 6% share in Japan, raising skepticism that simply having the open market that the Trump administration says will exist in that country will be sufficient. 'Tough nut to crack, and I'd be very surprised if we see any meaningful market penetration in Japan,' Blunt said. Asked at Wednesday's briefing about whether Trump's sectoral tariffs such as those on autos were now subject to possible change, White House press secretary Karoline Leavitt said that the issue had been going through the Commerce Department. The framework with Japan was also an indication that some nations simply saw it as preferential to have a set tariff rate rather than be whipsawed by Trump's changes on import taxes since April. But for the moment, both Japan and the United Kingdom with its quotas on auto exports might enjoy a competitive edge in the U.S. 'With this agreement in place it provides Japan with a near-term operating cost advantage compared to other foreign automakers, and even some domestic U.S. product that uses a high degree of both foreign production and parts content,' said Karl Brauer, executive analyst at iSeeCars. "It will be interesting to see if this is the first domino to fall in a series of foreign countries that decide long-term stability is more important that short term disputes over specific tariff rates.' Autos Drive America, an organization that represents major Japanese companies Toyota, Honda and Nissan and other international automakers, said in a statement that it is 'encouraged' by the announced trade framework and noted its members have exceeded domestic automaker production for the past two years. The statement urged "the Trump administration to swiftly reach similar agreements with other allies and partners, especially the European Union, South Korea, Canada and Mexico.' The Japanese framework could give automakers and other countries grounds for pushing for changes in the Trump administration's tariffs regime. The president has previously said that he values flexibility in negotiating import taxes. The USMCA is up for review next year. Ford, GM and Stellantis do 'have every right to be upset,' said Sam Fiorani, vice president at consultancy AutoForecast Solutions. But 'Honda, Toyota, and Nissan still import vehicles from Mexico and Canada, where the current levels of tariffs can be higher than those applied to Japanese imports. Most of the high-volume models from Japanese brands are already produced in North America.' Fiorani noted that among the few exceptions are the Toyota 4Runner, the Mazda CX-5 and the Subaru Forester, but most of the other imports fill niches that are too small to warrant production in the U.S. 'There will be negotiations between the U.S. and Canada and Mexico, and it will probably result in tariffs no higher than 15%,' Fiorani added, 'but nobody seems to be in a hurry to negotiate around the last Trump administration's free trade agreement.' ___ St. John contributed from Detroit. Josh Boak And Alexa St. John, The Associated Press Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Japan Today
23-07-2025
- Automotive
- Japan Today
US automakers say Trump's 15% tariff deal with Japan puts them at a disadvantage
President Donald Trump greets people during a reception for Republican members of Congress in the East Room of the White House, Tuesday, July 22, 2025, in Washington. (AP Photo/Julia Demaree Nikhinson) By JOSH BOAK and ALEXA ST. JOHN U.S. automakers worry that President Donald Trump's agreement to tariff Japanese vehicles at 15% would put them at a competitive disadvantage, saying they will face steeper import taxes on steel, aluminum and parts than their competitors. 'We need to review all the details of the agreement, but this is a deal that will charge lower tariffs on Japanese autos with no U.S. content,' said Matt Blunt, president of the American Automotive Policy Council, which represents the Big 3 American automakers, General Motors, Ford and Jeep-maker Stellantis. Blunt said in an interview the U.S. companies and workers 'definitely are at a disadvantage' because they face a 50% tariff on steel and aluminum and a 25% tariff on parts and finished vehicles, with some exceptions for products covered under the United States-Mexico-Canada Agreement that went into effect in 2020. The domestic automaker reaction reveals the challenge of enforcing policies across the world economy, showing that for all of Trump's promises there can be genuine tradeoffs from policy choices that risk serious blowback in politically important states such as Michigan and Wisconsin, where automaking is both a source of income and of identity. Trump portrayed the trade framework as a major win after announcing it on Tuesday, saying it would add hundreds of thousands of jobs to the U.S. economy and open the Japanese economy in ways that could close a persistent trade imbalance. The agreement includes a 15% tariff that replaces the 25% import tax the Republican president had threatened to charge starting on Aug. 1. Japan would also put together $550 billion to invest in U.S. projects at the 'direction' of the president, the White House said. The framework with Japan will remove regulations that prevent American vehicles from being sold in that country, the White House has said, adding that it would be possible for vehicles built in Detroit to be shipped directly to Japan and ready to be sold. But Blunt said that foreign auto producers, including the U.S., Europe and South Korea, have just a 6% share in Japan, raising skepticism that simply having the open market that the Trump administration says will exist in that country will be sufficient. 'Tough nut to crack, and I'd be very surprised if we see any meaningful market penetration in Japan,' Blunt said. Asked at Wednesday's briefing about whether Trump's sectoral tariffs such as those on autos were now subject to possible change, White House press secretary Karoline Leavitt said that the issue had been going through the Commerce Department. The framework with Japan was also an indication that some nations simply saw it as preferential to have a set tariff rate rather than be whipsawed by Trump's changes on import taxes since April. But for the moment, both Japan and the United Kingdom with its quotas on auto exports might enjoy a competitive edge in the U.S. 'With this agreement in place it provides Japan with a near-term operating cost advantage compared to other foreign automakers, and even some domestic U.S. product that uses a high degree of both foreign production and parts content,' said Karl Brauer, executive analyst at iSeeCars. "It will be interesting to see if this is the first domino to fall in a series of foreign countries that decide long-term stability is more important that short term disputes over specific tariff rates.' Autos Drive America, an organization that represents major Japanese companies Toyota, Honda and Nissan and other international automakers, said in a statement that it is 'encouraged' by the announced trade framework and noted its members have exceeded domestic automaker production for the past two years. The statement urged "the Trump administration to swiftly reach similar agreements with other allies and partners, especially the European Union, South Korea, Canada and Mexico.' The Japanese framework could give automakers and other countries grounds for pushing for changes in the Trump administration's tariffs regime. The president has previously said that he values flexibility in negotiating import taxes. The USMCA is up for review next year. Ford, GM and Stellantis do 'have every right to be upset,' said Sam Fiorani, vice president at consultancy AutoForecast Solutions. But 'Honda, Toyota, and Nissan still import vehicles from Mexico and Canada, where the current levels of tariffs can be higher than those applied to Japanese imports. Most of the high-volume models from Japanese brands are already produced in North America.' Fiorani noted that among the few exceptions are the Toyota 4Runner, the Mazda CX-5 and the Subaru Forester, but most of the other imports fill niches that are too small to warrant production in the U.S. 'There will be negotiations between the U.S. and Canada and Mexico, and it will probably result in tariffs no higher than 15%,' Fiorani added, 'but nobody seems to be in a hurry to negotiate around the last Trump administration's free trade agreement.' St. John contributed from Detroit. © Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
Globe and Mail
23-07-2025
- Automotive
- Globe and Mail
U.S. automakers say Trump's tariff deal with Japan puts them at a disadvantage
U.S. automakers are concerned about President Donald Trump's agreement to tariff Japanese vehicles at 15 per cent, saying they will face steeper import taxes on steel, aluminum and parts than their competitors. 'We need to review all the details of the agreement, but this is a deal that will charge lower tariffs on Japanese autos with no U.S. content,' said Matt Blunt, president of the American Automotive Policy Council, which represents the Big 3 American automakers, General Motors Co. GM-N, Ford Motor Co. F-N and Jeep-maker Stellantis NV STLA-N. Blunt said in an interview the U.S. companies and workers 'definitely are at a disadvantage' because they face a 50-per-cent tariff on steel and aluminum and a 25-per-cent tariff on parts and finished vehicles, with some exceptions for products covered under the United States-Mexico-Canada Agreement that went into effect in 2020. The domestic automaker reaction reveals the challenge of enforcing policies across the world economy, showing that for all of Trump's promises there can be genuine tradeoffs from policy choices that risk serious blowback in politically important states such as Michigan and Wisconsin, where automaking is both a source of income and of identity. Trump portrayed the trade framework as a major win after announcing it on Tuesday, saying it would add hundreds of thousands of jobs to the U.S. economy and open the Japanese economy in ways that could close a persistent trade imbalance. The agreement includes a 15-per-cent tariff that replaces the 25-per-cent import tax the Republican president had threatened to charge starting on Aug. 1. Japan would also put together US$550-billion to invest in U.S. projects at the 'direction' of the president, the White House said. EU heading toward 15% tariff deal with Washington, diplomats say The framework with Japan will remove regulations that prevent American vehicles from being sold in that country, the White House has said, adding that it would be possible for vehicles built in Detroit to be shipped directly to Japan and ready to be sold. But Blunt said that foreign auto producers, including the U.S., Europe and South Korea, have just a 6-per-cent share in Japan, raising skepticism that simply having the open market that the Trump administration says will exist in that country will be sufficient. 'Tough nut to crack, and I'd be very surprised if we see any meaningful market penetration in Japan,' Blunt said. Asked at Wednesday's briefing about whether Trump's sectoral tariffs such as those on autos were now subject to possible change, White House press secretary Karoline Leavitt said that the issue had been going through the Commerce Department. The framework with Japan was also an indication that some nations simply saw it as preferential to have a set tariff rate rather than be whipsawed by Trump's changes on import taxes since April. But for the moment, both Japan and the United Kingdom with its quotas on auto exports might enjoy a competitive edge in the U.S. 'With this agreement in place it provides Japan with a near-term operating cost advantage compared to other foreign automakers, and even some domestic U.S. product that uses a high degree of both foreign production and parts content,' said Karl Brauer, executive analyst at iSeeCars. 'It will be interesting to see if this is the first domino to fall in a series of foreign countries that decide long-term stability is more important that short term disputes over specific tariff rates.' Autos Drive America, an organization that represents major Japanese companies Toyota, Honda and Nissan and other international automakers, said in a statement that it is 'encouraged' by the announced trade framework and noted its members have exceeded domestic automaker production for the past two years. Indonesia agrees to cut tariffs, scrap non-tariff barriers in U.S. trade deal The statement urged 'the Trump administration to swiftly reach similar agreements with other allies and partners, especially the European Union, South Korea, Canada and Mexico.' The Japanese framework could give automakers and other countries grounds for pushing for changes in the Trump administration's tariffs regime. The president has previously said that he values flexibility in negotiating import taxes. The USMCA is up for review next year. Ford, GM and Stellantis do 'have every right to be upset,' said Sam Fiorani, vice president at consultancy AutoForecast Solutions. But 'Honda, Toyota, and Nissan still import vehicles from Mexico and Canada, where the current levels of tariffs can be higher than those applied to Japanese imports. Most of the high-volume models from Japanese brands are already produced in North America.' Fiorani noted that among the few exceptions are the Toyota 4Runner, the Mazda CX-5 and the Subaru Forester, but most of the other imports fill niches that are too small to warrant production in the U.S. 'There will be negotiations between the U.S. and Canada and Mexico, and it will probably result in tariffs no higher than 15 per cent,' Fiorani added, 'but nobody seems to be in a hurry to negotiate around the last Trump administration's free trade agreement.'
