Detroit Three automakers criticize U.S.-Japan trade deal over uneven tariffs

A coalition representing General Motors (NYSE:GM), Ford (NYSE:F), and Chrysler-parent Stellantis (NYSE:STLA) voiced concerns Tuesday over a trade deal that would reduce tariffs on Japanese auto imports to 15% while leaving the 25% tariff in place for vehicles imported from Canada and Mexico.

Matt Blunt, president of the American Automotive Policy Council, which represents the three automakers, told Reuters the group is still reviewing the agreement.

However, he warned that “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.”

Trump has threatened to hike tariffs on Mexico to 30% and Canada to 35% on August 1.

GM (NYSE:GM) said Tuesday that tariffs cost the company $1.1 billion in the second quarter and warned that the impact is likely to grow in the third quarter.

Stellantis said Monday it expects more impact from U.S. tariffs on vehicles and auto part imports in the second half of 2025, reporting Trump’s tariffs had cost it 300 million euros ($352 million) so far.