Detroit Automakers Lobby Trump Administration Over Trade Deal Revisions

Detroit-based automakers plan to lobby the Trump administration against proposed revisions to the North American trade deal, warning that new requirements could cost each company at least $2 billion annually. The proposed rules would require vehicles to contain at least 50% U.S.-made content to qualify for lower tariffs and increase overall North American content above the current 75% level.

General Motors and other U.S. automakers argue these rules, combined with existing levies on steel, aluminum, and parts, create a competitive disadvantage against Japanese, South Korean, and European rivals who face a flat 15% tariff. General Motors expects tariff-related expenses between $2.5 billion and $3.5 billion this year, while Ford Motor Company estimates a $1 billion net hit.

In response to the trade environment, Ford Motor Company announced it will move production of Lincoln models for the U.S. market from China to American factories. U.S. Commerce Secretary Howard Lutnick expressed hope that more automakers will move factory work to the United States. U.S. and Mexican officials are scheduled for a fourth round of trade talks next month.