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Trump's 'massive' deal with Japan is giving US automakers heartburn
Politico ^ | 07/23/2025 07:59 PM EDT | Daniel Desrochers and Chris Marquette

Posted on 07/23/2025 6:10:30 PM PDT by E. Pluribus Unum

The preliminary agreement suggests there is a path forward to lowering the auto duties on other major trading partners, as well.

President Donald Trump’s “massive” trade deal with Japan is buoying foreign carmakers — and alarming American car companies who fear they are now at a disadvantage.

Trump imposed a 25 percent tariff on all foreign auto manufacturers in early April, a duty that also applies to cars made by U.S. companies from parts imported from Mexico and Canada. But now, the president is planning to lower the tariff to 15 percent for Japanese autos and auto parts, the White House confirmed Wednesday. That means some cars manufactured by U.S. companies could end up facing higher duties than some cars built entirely overseas.

The new deal with Tokyo suggests there is a path forward to lowering the auto duties, an issue that has bedeviled trade talks with other major trading partners like the European Union and South Korea. And it’s causing angst for U.S. automakers, who warn that it would hurt domestic industry due to the complex North American auto supply chain.

“American Automakers still need to review the details of the U.S.-Japan agreement, but any deal that charges a lower tariff for Japanese imports with virtually no U.S. content than it does North American-built vehicles with high U.S. content is a bad deal for the U.S. industry and U.S. auto workers,” said Matt Blunt, president of the American Automotive Policy Council, which represents the American companies Ford, General Motors and Stellantis.

The White House did not respond to a request for comment.

Treasury Secretary Scott Bessent, in an interview on Bloomberg television Wednesday morning, credited the decision to lower Japan’s auto tariff rate to its offer of new investments, which he...

(Excerpt) Read more at politico.com ...


TOPICS: Business/Economy; Canada; European Union; Foreign Affairs; Japan; Mexico
KEYWORDS: canada; chrismarquette; danieldesrochers; demagogicparty; dnctalkingpoint; dnctalkingpoints; fakenews; ford; generalmotors; howardlutnick; japan; korea; mattblunt; mediawingofthednc; mexico; panicporn; partisanmediashill; partisanmediashills; politico; politicopostedinnews; pollutico; republicofkorea; scottbessent; stellantis

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1 posted on 07/23/2025 6:10:30 PM PDT by E. Pluribus Unum
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To: E. Pluribus Unum

Wait tariffs were so no good bad, and now they want higher tariffs.


2 posted on 07/23/2025 6:16:42 PM PDT by Williams (Thank God for the election of President Trump!)
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To: E. Pluribus Unum

Simple solution would be make parts in the USA.


3 posted on 07/23/2025 6:17:13 PM PDT by central_va (The I won't be reconstructed and I do not give a damn...)
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To: E. Pluribus Unum

Tariffs are always bad, as most taxes are.

Tariffs between ALLIES should be banned.
Instead, this is the future for good business: Zero taxes on EU products. Zero taxes on US products.


4 posted on 07/23/2025 6:19:44 PM PDT by USA-FRANCE (Silence against evil isn't neutrality, it's complicity. Oppose the Iran-Russia-North Korea Alliance!)
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To: E. Pluribus Unum

Tariffs are always bad, as most taxes are.

Tariffs between ALLIES should be banned.
Instead, this is the future for good business: Zero taxes on EU products. Zero taxes on US products.


5 posted on 07/23/2025 6:19:47 PM PDT by USA-FRANCE (Silence against evil isn't neutrality, it's complicity. Oppose the Iran-Russia-North Korea Alliance!)
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To: E. Pluribus Unum

Politico, gotta be true then.


6 posted on 07/23/2025 6:20:17 PM PDT by Frank Drebin (And don't ever let me catch you guys in America!)
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To: E. Pluribus Unum

How about ‘elbows up’ Canada make a similar tariff deal?


7 posted on 07/23/2025 6:22:31 PM PDT by hanamizu ( )
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To: E. Pluribus Unum

“North America vehicles with high US content”
What is “North America” and “high”
There no deal with Canada and Mexico yet.
If they’re all US made, no tariffs and a tax deduction for financing US cars.
The production of North American cars should be in the US. Making cars in Canada is no better than in Japan.


8 posted on 07/23/2025 6:30:38 PM PDT by grumpygresh
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To: E. Pluribus Unum

I assume the pickup tax of 25% still applies.


9 posted on 07/23/2025 6:32:49 PM PDT by alternatives?
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To: USA-FRANCE
Tariffs between ALLIES should be banned.
Instead, this is the future for good business: Zero taxes on EU products. Zero taxes on US products.

I would hardly consider most European countries to be our allies. Countries like Germany and France would love to see us fail. The EU has plenty of ways to make trade between us very lopsided in their favor without tariffs so even without tariffs our trade relations would still be very one-sided in their favor.

10 posted on 07/23/2025 6:45:17 PM PDT by AlaskaErik (There are three kinds of rats: Rats, Damned Rats, and DemocRats.)
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To: USA-FRANCE

I don’t believe I have ever read a comment posted by you that I agree with. Congratulations on batting a 1000.


11 posted on 07/23/2025 6:53:51 PM PDT by traderrob6
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To: E. Pluribus Unum

Well, then, perhaps US auto makers might consider making higher quality cars for the same price that they sell them now, which will significantly aid them against their foreign competitors. Nothing like a little competition to up one’s game - I have had more than enough of the “I’m number one, why try hard harder?“ attitude.


12 posted on 07/23/2025 7:03:51 PM PDT by Ancesthntr ("The right to buy weapons is the right to be free." The Weapons Shops of Isher)
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To: E. Pluribus Unum

US car makers produce crap. If they made reliable cars and trucks, they wouldn’t have a problem.


13 posted on 07/23/2025 7:05:19 PM PDT by Organic Panic ('Was I molested. I think so' - Ashley Biden in response to her father joining her in the shower. )
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To: USA-FRANCE

You have too high of expectations for the EUSSR.


14 posted on 07/23/2025 7:06:41 PM PDT by Olog-hai ("No Republican, no matter how liberal, is going to woo a Democratic vote." -- Ronald Reagan, 1960)
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To: Williams

they just are against anything Trump does regardless, you cant make any logical sense of it

TDS


15 posted on 07/23/2025 7:09:56 PM PDT by TexasFreeper2009
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To: USA-FRANCE

I agree 100% but you’re in a distinct minority around these parts nowadays.

But whatever - I’ve accepted the dominant reality, I’m well-off enough (and old enough) that the ultimate result won’t hurt me much. I tell my kids and grandkids - I don’t really care who you vote for, but the universal truth is that you rely on daddy/mommy government to fix your life... make things affordable to you, make a decent living... you’re already losing, so plan accordingly. Once upon a time, this was easy — the demos/left were deadset on being mommy government. Now? People want a *daddy* government. It’s all just different form of dependency - and the answer is still, fortunately, the same: grow up and make your own success.

That said, specifically on automobiles? One of the things that most amuses me is that people just fail to grasp that Americans are unique in what we want in an automobile. We like big vehicles. We like a big powerful V-8. We want a tank, but one that handles curves like a well-practiced lover in a longterm relationship.

Ford, GM, Chevy (whatever they call themselves now) have always understood this - and they’ve always built cars Americans like, but people in Europe and Asia hate. Whatever.

I travel to Europe quite a bit - Asia only occasionally - but when I’m riding in a car of a colleague abroad? Oooo... look how small and fuel-efficient and tiny it is! And then, when such colleagues from abroad are here and I’m driving? Check out that leg room! Watch me blow this guy off the line.

Different strokes for different folks - I’m fine with that. But only fool thinks the market shares for automakers are a matter of “trade barriers”. American manufacturers just build cars - big, muscular, badass cars - that *Americans* like to buy. Foreign car companies - well, mostly Asian* - build cars that people in Europe and Asia like - nerdy, little ‘efficient’ cars.

*Mercedes makes some nice cars. I’ll stick with my Mustangs and Cadillacs, but sure. There are nice Mercedes models.


16 posted on 07/23/2025 7:34:39 PM PDT by Capn Hayek (Capital is not responsible for Labor's lack of planning)
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To: Frank Drebin
Even if it is true...

A truth that's told with bad intent, Beats all the lies you can invent.

William Blake

Something to keep in mind when dealing with the enemedia.

17 posted on 07/23/2025 7:37:22 PM PDT by mewzilla (Swing away, Mr. President, swing away!)
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To: E. Pluribus Unum

Gee Politico, must be why auto companies stock is rising.

$550 billion investments from Japan at Trump’s discretion.

$17 billion a year to buy American military equipment, etc.

Yeah, sure BSticol.


18 posted on 07/23/2025 7:45:02 PM PDT by Fledermaus ("It turns out all we really needed was a new President!")
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To: USA-FRANCE

“ Tariffs are always bad, as most taxes are.

Tariffs between ALLIES should be banned.
Instead, this is the future for good business: Zero taxes on EU products. Zero taxes on US products.”
******************************************

Oh, Frenchie…. you ALWAYS want what is best for the USA. We should ALWAYS follow your recommendations. /sarc


19 posted on 07/23/2025 8:18:49 PM PDT by House Atreides (I’m now ULTRA-MAGA-PRO-MAX>)
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To: Organic Panic

We are looking to replace our four door sedan. Ford and GM seem to have abandoned the sedan market in favor of trucks and SUVs. At least Japan and South Korea still make four door sedans.


20 posted on 07/23/2025 8:56:50 PM PDT by reg45 (Barack 0bama: Gone but not forgiven.)
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