Major US automakers express concern over new trade agreement with Japan

Major US automakers have expressed deep concern over the new US-Japan trade agreement, which will reduce tariffs on Japanese auto imports to 15%, while maintaining tariffs on imports from Canada and Mexico at 25%.

The American Automotive Industry Policy Council (AAPC) warned that this agreement weakens the competitiveness of North American-made vehicles and harms American industry and workers.

The White House, however, defended the agreement, calling it a historic victory for US automakers after Japan agreed to remove trade barriers that had hindered the entry of US cars into its market.

In a related development, General Motors and Stellantis reported direct losses due to tariffs, amid concerns that the burden will worsen in the second half of the year. The US-Japan agreement included an immediate reduction in tariffs on Japanese cars from 25% to 15%, in addition to a similar reduction in tariffs on other Japanese goods, which were to take effect on August 1.