Detroit’s automakers plan to argue to the Trump administration that its proposals for a revised North American trade deal could cost the companies billions of dollars and hurt their competitiveness with foreign rivals.
U.S. car companies are still struggling to absorb the bevy of tariffs the administration implemented last year, including levies on steel and aluminum, car parts and vehicles shipped in from Mexico and Canada, and say rivals from Japan, South Korea and Europe face lower tariff burdens.
Now, U.S. auto executives worry that U.S. proposals floated ahead of talks scheduled with Mexican trade officials next month could jack up costs even further.
One of the most contentious points for automakers is Washington's demand that vehicles contain at least 50% U.S.-made content to qualify for lower tariffs, as Reuters reported in May. That requirement, as well as a proposal to increase overall North American vehicle content from the current 75% level, would add at least $2 billion in annual costs for each Detroit automaker, according to estimates at two automakers.
Those expenses would come atop costs the automakers have already been incurring from the various levies in place since last year.