Matt Blunt, who heads the American Automotive Policy Council (AAPC) that represents the Detroit Three automakers, said they were still reviewing the agreement but “any deal that charges a lower tariff for Japanese imports with virtually no US content than the tariff imposed on North American built vehicles with high US content is a bad deal for US industry and US auto workers”.

Trump has threatened to hike tariffs on Mexico to 30% and Canada to 35% on Aug 1.

GM said yesterday its second-quarter earnings took a US$1.1-billion hit from tariffs and expects the impact to worsen in the third quarter.

On Monday, Stellantis said it expects more impact from US tariffs on vehicles and auto part imports in the second half of 2025, reporting Trump’s tariffs had cost it €300 million (US$352 million) so far as the company reduced vehicle shipments and cut some production to adjust manufacturing levels.

In May, AAPC criticised Trump’s announced trade deal with Britain, saying it would harm the US auto sector.

British carmakers will be given a quota of 100,000 cars a year that can be sent to the US at a 10% tariff rate, almost the total Britain exported last year.

“This hurts American automakers, suppliers, and auto workers,” AAPC said.

Trump in April softened the blow of his auto tariffs by easing the impact of duties on parts and materials, but left in place 25% tariffs on imported vehicles.

He also extended a duty-free exemption for North American parts that comply with the US-Mexico-Canada trade agreement rules of origin.