Automotive industry: US car manufacturers warn of billion-dollar burdens due to new trade plans

Düsseldorf. The major US automakers fear new billion-dollar burdens from the changes to the North American trade agreement USMCA sought by President Donald Trump. According to insiders, the companies from the industry hub of Detroit want to make it clear to the Trump administration that their proposals for a revised trade agreement could cost the companies billions of dollars and impair their competitiveness against foreign competitors.

The companies already have to bear new charges on steel and aluminum as well as on car parts and vehicles imported from Mexico and Canada and believe their competitors from Japan, South Korea and Europe are less burdened. One of the most contentious issues for automakers is Washington's demand that vehicles must contain at least 50 percent US-made components in order to receive tariff relief.

This and a proposal to increase the required overall proportion of North American vehicle components from 75 percent would, according to estimates by two automakers, cause each Detroit manufacturer annual additional costs of at least $2 billion. The office of the US Trade Representative did not respond to a request for comment. In the past, government officials have stated that their tariff measures aim to generate more investment in US factories and create jobs.