Commerce Secretary Howard Lutnick said Thursday that American auto CEOs told him they are “cool with” President Donald Trump’s new trade deal, which could put lower tariffs on cars imported from Japan than on cars made by U.S. companies in Canada and Mexico.
Lutnick brushed off complaints from a group representing General Motors, Ford and Stellantis that Trump’s plan could give Japanese automakers an advantage over the “Big Three” Detroit car companies.
“Oh, my God, that’s just so silly,” Lutnick said on CNBC’s “Squawk on the Street” after being asked about criticism by the American Automotive Policy Council.
The agreement Trump announced Tuesday would see Japan accept a tariff of 15% on cars it exports to the U.S. in addition to pledging $550 billion in U.S. investments.
But American auto companies will be on the hook for a 25% levy on cars they make in Canada and Mexico and import into the U.S. under tariffs imposed by Trump in April.
