Detroit's Big Three automakers have publicly opposed the recent U.S.-Japan trade agreement brokered by the Trump administration, describing it as a "bad deal" for the U.S. auto industry and American auto workers. The pact reduces tariffs on Japanese automotive imports, including a 15% tax on vehicles from Japan, which Detroit automakers argue puts them at a competitive disadvantage. Despite the criticism from U.S. manufacturers, Japanese automaker stocks, including Toyota, Honda, and Nissan, surged to a one-year high following the announcement. The Nikkei 225 index rallied 3.5%, and European shares also rose amid optimism that the European Union might secure a similar trade agreement with the U.S. The trade deal has sparked concerns among U.S. automakers about the impact on domestic production and jobs, with some suggesting the pact encourages production in Mexico rather than the United States.
Latest tariff deals leave US automakers in a tough position https://t.co/6dB13NbrOx
Stocks jumped even more in Tokyo, where the Nikkei 225 rallied 3.5% after President Donald Trump announced a trade framework that would place a 15% tax on imports coming from Japan. https://t.co/rsAUHDeEz2
U.S. automakers say Trump’s 15% tariff deal with Japan puts them at a disadvantage https://t.co/knC5OETOCB https://t.co/FxkTC3H7no