A lobbying group that represents General Motors (GM), Ford and Stellantis, expressed its concerns at the start of the week as to a trade agreement which reduces customs duties on automobile imports from Japan to 15 %.
The US Automobile Policy Council explains that with 25 % customs duties on imports from Canada and Mexico, the agreement gives the advantage to Japanese imports.
It is a bad deal for American industry and American automotive workers
declares the president of this council, Matt Blunt.
American surcharge of 50 % on steel and aluminum are not affected by the agreement between the two countries.
Photo : Getty Images / STR
Companies are concerned about the fact that they could soon pay higher customs duties on vehicles assembled in Mexico or Canada than on vehicles with significantly lower American content made in Japan or the United Kingdom.
An agreement thatirritated
If South Korea concludes a similar agreement with the United States, it could become a low-cost market for the assembly of cars and trucks, some lobbyists are worried.
Photo : Associated Press / Charles Rex Arbogast
The union United Auto Workers (UAW), which represents the workers of the three car manufacturers of Detroit, said deeply irritated
by agreement.
What we have seen so far clearly shows one thing: American workers are once again left behind
said the union in a statement published on Wednesday evening.
Warren Browne, industrial consultant and former leader of GMsaid the agreement with Japan disadvantaged all vehicles produced in Mexico and Canada by the three Detroit manufacturers
because they are subject to higher taxes than Toyota vehicles shipped from Japan, for example.
Mr. Browne thinks that this could allow foreign brands to offer prices lower than those of American car manufacturers.
According to the commercial analysis company GlobalDataToyota, Subaru and Mazda are among the companies that will benefit the most from the drop in customs duties between Japan and the United States.
Increased actions far from reassuring
A Ford F-150 vehicle assembly plant in Dearborn, Michigan.
Photo : Associated Press / Carlos Osorio
After the announcement of the agreement, the actions of GM, Ford Motor And Stellantis increased on Wednesday, investors seeing the sign of other upcoming agreements.
The actions of GM increased by 9 %, those of Stellantis by 12 %and those of Ford experienced an increase of approximately 2 %. But the three companies are not rejoicing.
The actions of the Japanese automotive sector also skyrocketed after the announcement of the trade agreement.
The announcement of the trade agreement with Japan took place the same day GM said it has recorded large losses in the effect of customs tariffs.
With Reuters information
