U.S. automakers voice concerns over Trump’s 15% tariff deal with Japan

US automakers are concerned that President Trump's agreement to tariff Japanese vehicles at 15% will put them at a competitive disadvantage. The American Automotive Policy Council, which represents General Motors, Ford, and Stellantis, says the deal will charge lower tariffs on Japanese autos with no US content. US companies and workers will face a 50% tariff on steel and aluminum and a 25% tariff on parts and finished vehicles, while Japanese companies will face a 15% tariff. The United Auto Workers is "deeply angered" by the deal, saying it rewards Japanese automakers and does not hold them to the same standards as US workers. Trump portrayed the trade framework as a major win, saying it will add hundreds of thousands of jobs to the US economy and open the Japanese economy. The agreement includes a 15% tariff that replaces the 25% import tax Trump had threatened to charge starting on August 1. Japan will also invest $550 billion in US projects at the direction of the president. However, US automakers have a small share of the Japanese market, and it is unclear if the deal will lead to significant market penetration. The framework could give other countries grounds for pushing for changes in the Trump administration's tariffs regime. The deal may also lead to negotiations between the US and Canada and Mexico, which could result in tariffs no higher than 15%.