by Detroit’s Big Three automakers—General Motors, Ford, and Stellantis—are furious after former President Donald Trump’s first trade deal since returning to office gives the U.K. auto industry a competitive edge over North American manufacturers.
A lobby group representing the automakers said the new agreement unfairly benefits U.K. imports, which typically lack American-made parts, while U.S.-Mexico-Canada Agreement (USMCA) vehicles—with far more U.S. content—face higher trade barriers.
U.K. Cars Get a Better Deal Than American-Made Vehicles
“Under this deal, it will now be cheaper to import a U.K. vehicle with very little U.S. content than a USMCA-compliant vehicle from Mexico or Canada that is half American parts,” said Matt Blunt, President of the American Automotive Policy Council.
The deal would lower the U.S. tariff on U.K.-made vehicles from 25% to just 10% of a vehicle’s value—matching the U.K.’s own duty on U.S. imports. However, this rate only applies to the first 100,000 vehicles annually. Beyond that, the original 25% tariff resumes.
Still, that 100,000 cap conveniently matches the number of British cars imported into the U.S. last year.
American Industry Feels Betrayed
Blunt accused Trump of undermining American workers, suppliers, and manufacturers by prioritizing a foreign deal before shoring up domestic interests. He warned that this sets a dangerous precedent for future negotiations with Asian and European auto giants.
“This hurts American automakers, suppliers, and auto workers,” Blunt said. “We hope this preferential access for U.K. vehicles over North American ones does not become a model for future deals.”
White House Defends Trade Move
The Trump administration pushed back, insisting no other president has shown more personal commitment to reviving U.S. auto manufacturing.
“The Trump administration is working hand-in-glove with automakers to re-shore manufacturing, including with custom-tailored tariff relief,” said White House spokesman Kush Desai.
The deal, while not yet finalized, comes amid political challenges for both Trump and U.K. Prime Minister Keir Starmer. The agreement offers both leaders a much-needed political victory.
Luxury Car Bias? Trump Cites Rolls-Royce
In a surprising admission, Trump revealed his personal affection for Britain’s handmade luxury car brands—Rolls-Royce, Bentley, and McLaren—played a role in the decision.
“That’s really handmade stuff,” he said. “They’ve been doing it for a long time in the same location… Let’s help them out with that one.”
British Industry Celebrates
While Detroit fumes, U.K. automakers celebrated the deal. Mike Hawes, CEO of the Society of Motor Manufacturers and Traders (SMMT), called the agreement “great news.”
“The application of these tariffs was a severe and immediate threat to U.K. automotive exporters, so this deal provides much-needed relief,” Hawes stated.
Investors responded positively as shares in Aston Martin, Britain’s only publicly traded carmaker, jumped 14% following the announcement.
