U.S.-U.K. Trade Deal Cuts Auto Tariffs to 10%, Draws Criticism from American Automakers; Japan Analyzes Impact

The recent trade agreement between the United States and the United Kingdom, which includes a reduction of auto tariffs to 10%, has drawn criticism from U.S. automakers who argue that it places them at a disadvantage compared to vehicles imported under the USMCA agreement from Canada and Mexico. These automakers highlight that UK vehicles with minimal U.S. content will now be cheaper to import than USMCA-compliant vehicles, which contain a higher proportion of American parts, potentially harming American automakers, suppliers, and workers.

Meanwhile, Japan is closely analyzing the U.S.-U.K. deal as it represents the first trade agreement completed under the new U.S. tariff measures. Ryosei Akazawa, Japan’s chief trade negotiator, stated that the deal would not affect Japan’s position in its ongoing trade talks with the Trump administration. The Japanese government is assessing the agreement to explore opportunities to improve its own negotiations with the U.S. Ambassador to Japan George Glass suggested that the U.S.-U.K. deal could serve as a model for Japan-U.S. negotiations, potentially leading to lower U.S. tariffs on Japanese cars. However, Japan remains cautious, particularly regarding concessions on automobile import quotas, as the trade scale discrepancy between the U.S. and U.K. is more than tenfold. Classic car owners in the UK have also expressed dissatisfaction with the tariff reduction.