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Detroit Automakers Fear North American Trade Deal Revamp Could Cost Them Billions: Reuters Exclusive
Automakers say proposed North American trade rules would add at least $2 billion in annual costs for each Detroit company, according to estimates from two automakers.
- Detroit automakers plan to argue to the Trump administration that proposals for a revised North American trade deal could cost billions of dollars and hurt their competitiveness with foreign rivals.
- Companies continue struggling to absorb various levies implemented since last year, including tariffs on steel and aluminum; General Motors expects gross tariff expenses to cost between $2.5 billion and $3.5 billion this year.
- A proposal to increase overall North American vehicle content from the current 75% level would add at least $2 billion in annual costs for each Detroit automaker, while Washington demands vehicles contain at least 50% U.S.-made content to qualify for lower tariffs.
- Signaling commitment to domestic production, Ford said Wednesday it would move production of Lincoln models for the U.S. market to American factories from China. Ford CEO Jim Farley said, "It dawned on us very quickly, 'Hey, look, we need to make some changes here,'".
- The American Automotive Policy Council argues U.S. automakers remain at a disadvantage compared to Japanese, South Korean, and European rivals, who export into the U.S. while facing a flat 15% tariff.
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Detroit automakers fear North American trade deal revamp could cost them billions: Reuters exclusive
Detroit’s automakers plan to argue to the Trump administration that its proposals for a revised North American trade deal could cost the companies billions of dollars and hurt their competitiveness with foreign rivals.
·Toronto, Canada
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Detroit car manufacturers will expose to the U.S. government that its proposals for the revision of the North American trade treaty could cost companies billions of dollars and undermine their competitiveness vis-à-vis foreign rivals.
·Mexico
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Washington promotes that vehicles must contain at least 50 percent of components manufactured in the United States in order to obtain customs relief.
·Düsseldorf, Germany
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Total News Sources16
Leaning Left6Leaning Right2Center4Last UpdatedBias Distribution50% Left
Bias Distribution
- 50% of the sources lean Left
50% Left
L 50%
C 33%
R 17%
Factuality
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