Detroit Calls for Preferential Tariff Treatment for Mexico and Canada

A preliminary agreement between the government of President Donald J. Trump and the United Kingdom has generated discontent among car manufacturers, due to the fact that it privileges imports from the European country over those from Mexico and Canada, whose industries are better integrated with the U.S. industry.

According to the details announced by both governments at the beginning of May, practically all vehicles produced in England will pay a 10% levy when entering the U.S. market, while units coming from its partners within the USMCA pay up to 25%.

This situation led the three main Detroit automotive groups, General Motors, Stellantis and Ford, through their lobbyists, to request the White House to reverse this criterion, as it will put their North American operations at a disadvantage, according to an AutoNews report.

In this regard, S&P Global Mobility executives estimate that the tariff treatment for Mexico and Canada will be more favorable once agreements are reached, and that the disparity with the United Kingdom is temporary and is simply due to the fact that “they were the first in line”.