{"id":447,"date":"2025-07-23T11:34:00","date_gmt":"2025-07-23T11:34:00","guid":{"rendered":"https:\/\/klemtravalos.com\/?p=447"},"modified":"2025-07-23T11:53:09","modified_gmt":"2025-07-23T11:53:09","slug":"detroits-big-3-furious-after-trumps-trade-deal-with-japan","status":"publish","type":"post","link":"https:\/\/klemtravalos.com\/index.php\/2025\/07\/23\/detroits-big-3-furious-after-trumps-trade-deal-with-japan\/","title":{"rendered":"Detroit\u2019s Big 3 Furious After Trump\u2019s Trade Deal With Japan"},"content":{"rendered":"<div><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" class=\"attachment-large size-large wp-post-image lazyload\" alt=\"\" style=\"margin-bottom: 15px\" loading=\"lazy\" data-src=\"https:\/\/klemtravalos.com\/wp-content\/uploads\/2025\/07\/GR86-US-flag-Jul23251-1024x576-1.jpg\"><\/div>\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-1 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:100%\">\n<ul>\n<li>Japan and the US have negotiated a trade deal that cuts tariffs from 25 to 15 percent.<\/li>\n<li>Detroit is furious because tariffs on its Mexico and Canada-built cars are much higher.<\/li>\n<li>Trump has threatened 30 percent tariffs on Mexico, 35 percent on Canada from Aug 1.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<p>Japan and its automakers are celebrating a freshly inked trade deal between the country and US that dramatically reduces the <a href=\"https:\/\/www.carscoops.com\/tag\/tariffs\/\">tariffs<\/a> on its exports to America. But that same deal has left Detroit&rsquo;s automakers apoplectic with rage because their own vehicles could now be subject to higher tariffs than those shipped in from Asia.<\/p>\n<div class=\"ad-placement\">\n<div id=\"82503191-e1d1-435a-874f-9c78a2a54a2f\" class=\"_ap_apex_ad\"><\/div>\n<div id=\"0f7e3106-c4d6-4db4-8135-c508879a76f8\" class=\"_ap_apex_ad\"><\/div>\n<p>\t\t\t\tvar adpushup = window.adpushup  = window.adpushup || {que:[]};<br \/>\n\t\t\t\tadpushup.que.push(function() {<br \/>\n\t\t\t\t\tif (adpushup.config.platform !== &#8220;DESKTOP&#8221;){<br \/>\n\t\t\t\t\t\tadpushup.triggerAd(&#8220;0f7e3106-c4d6-4db4-8135-c508879a76f8&#8221;);<br \/>\n\t\t\t\t\t} else {<br \/>\n\t\t\t\t\t\tadpushup.triggerAd(&#8220;82503191-e1d1-435a-874f-9c78a2a54a2f&#8221;);<br \/>\n\t\t\t\t\t}<br \/>\n\t\t\t\t});<\/p><\/div>\n<p><strong>Related: <a href=\"https:\/\/www.carscoops.com\/2025\/07\/stellantis-expects-huge-loss-diminished-imports-during-first-half\/\">Stellantis Shipments To North America Fell Off A Cliff In Q2<\/a><\/strong><\/p>\n<p>This week&rsquo;s agreement means goods coming to the US from Japan will be tariffed at 15 percent, down from the current 25 percent level. Stock in Japanese automakers leapt at the news, Toyota&rsquo;s climbing 15 percent and Mazda&rsquo;s surging 17 percent.<\/p>\n<p><strong>Lower Tariffs, Rising Tensions<\/strong><\/p>\n<div id=\"taboola-mid-article\"><\/div>\n<div id=\"taboola-mid-article-thumbnails-organic\"><\/div>\n<p>But under those terms cars imported to the US from <a href=\"https:\/\/www.carscoops.com\/tag\/japan\/\">Japan<\/a> would attract a lower duty than those from Canada and Mexico, where Detroit-based brands build some of their vehicles. President Trump has threatened to push tariffs on goods coming from Mexico to 30 percent and those from Canada to 35 percent starting August 1.<\/p>\n<p>The White House called the Japan deal &ldquo;a historic win for American automakers by putting an end to Japan&rsquo;s unfair auto trade barriers for American-made cars,&rdquo; insinuating that the agreement was good for Detroit because it would now be able to sell more vehicles in Japan. <\/p>\n<p>        <a href=\"https:\/\/www.carscoops.com\/wp-content\/uploads\/2025\/04\/2025_Prius_Limited_WindChillPearl_009.jpg\" data-type=\"inarticle-image-block\"> <\/p>\n<figure class=\"wp-block-image size-large\">\n<p>                    <img loading=\"lazy\" decoding=\"async\" class=\"lazy \" src=\"\" alt=\" Detroit&rsquo;s Big 3 Furious After Trump&rsquo;s Trade Deal With Japan\" width=\"2540\" height=\"1429\" data-src=\"https:\/\/www.carscoops.com\/wp-content\/uploads\/2025\/04\/2025_Prius_Limited_WindChillPearl_009-1024x576.jpg\" data-type=\"inarticle-image\" \/><figcaption>Toyota<\/figcaption><\/figure>\n<p>        <\/a>  <\/p>\n<p>However, far more cars are sent from Japan to the <a href=\"https:\/\/www.carscoops.com\/tag\/usa\/\">US<\/a> than flow the other way &ndash; auto exports made up more than 28 percent of all shipments to America in 2024, according to customs data reported by <a href=\"https:\/\/www.cnbc.com\/2025\/07\/23\/stocks-of-japan-automakers-soars-after-us-lowers-auto-tariffs.html\">CNBC<\/a>.<\/p>\n<p>Detroit&rsquo;s car industry was rather less enthusiastic than The White House, telling <a href=\"https:\/\/www.reuters.com\/business\/autos-transportation\/detroit-three-automakers-raise-concerns-about-japan-trade-deal-2025-07-23\/\">Reuters<\/a>, &ldquo;any deal that charges a lower tariff for Japanese imports with virtually no U.S. content than the tariff imposed on North American-built vehicles with high U.S. content is a bad deal for U.S. industry and U.S. auto workers.&rdquo;<\/p>\n<p><strong>Mounting Costs and Global Unease<\/strong><\/p>\n<div class=\"ad-placement\">\n<div id=\"9b1169d9-7a89-4971-a77f-1397f7588751\" class=\"_ap_apex_ad\"> <\/div>\n<div id=\"bb7964e9-07de-4b06-a83e-ead35079d53c\" class=\"_ap_apex_ad\"> <\/div>\n<p>\t\t\t\tvar adpushup = window.adpushup  = window.adpushup || {que:[]};<br \/>\n\t\t\t\tadpushup.que.push(function() {<br \/>\n\t\t\t\t\tif (adpushup.config.platform !== &#8220;DESKTOP&#8221;){<br \/>\n\t\t\t\t\t\tadpushup.triggerAd(&#8220;bb7964e9-07de-4b06-a83e-ead35079d53c&#8221;);<br \/>\n\t\t\t\t\t} else {<br \/>\n\t\t\t\t\t\tadpushup.triggerAd(&#8220;9b1169d9-7a89-4971-a77f-1397f7588751&#8221;);<br \/>\n\t\t\t\t\t}<br \/>\n\t\t\t\t});<\/p><\/div>\n<p>GM says tariffs have already <a href=\"https:\/\/www.carscoops.com\/2025\/07\/trumps-trade-war-just-cost-gm-over-1-billion\/\">cost it $1.1 billion<\/a> in the second quarter of 2025 and could cost it $5 billion by the end of 2025. The US-Japan agreement rubs salt in a wound that&rsquo;s already sore after the UK negotiated a 10 percent tariff on its goods. <\/p>\n<p>Meanwhile, European carmaker are also anxious to strike a deal, but discussions between the EU and the US haven&rsquo;t proved fruitful and Trump recently threatened a <a href=\"https:\/\/www.carscoops.com\/2025\/07\/trump-slams-eu-and-mexico-with-harsher-tariffs\/\">30 percent tariff<\/a> on goods from the bloc.<\/p>\n<div class=\"ad-placement\">\n<div id=\"9b1169d9-7a89-4971-a77f-1397f7588751\" class=\"_ap_apex_ad\"> <\/div>\n<div id=\"bb7964e9-07de-4b06-a83e-ead35079d53c\" class=\"_ap_apex_ad\"> <\/div>\n<p>\t\t\t\tvar adpushup = window.adpushup  = window.adpushup || {que:[]};<br \/>\n\t\t\t\tadpushup.que.push(function() {<br \/>\n\t\t\t\t\tif (adpushup.config.platform !== &#8220;DESKTOP&#8221;){<br \/>\n\t\t\t\t\t\tadpushup.triggerAd(&#8220;bb7964e9-07de-4b06-a83e-ead35079d53c&#8221;);<br \/>\n\t\t\t\t\t} else {<br \/>\n\t\t\t\t\t\tadpushup.triggerAd(&#8220;9b1169d9-7a89-4971-a77f-1397f7588751&#8221;);<br \/>\n\t\t\t\t\t}<br \/>\n\t\t\t\t});<\/p><\/div>\n<p>        <a href=\"https:\/\/www.carscoops.com\/wp-content\/uploads\/2025\/07\/DLF5539-copy.jpg\" data-type=\"inarticle-image-block\"> <\/p>\n<figure class=\"wp-block-image size-large\">\n<p>                    <img loading=\"lazy\" decoding=\"async\" class=\"lazy \" src=\"\" alt=\" Detroit&rsquo;s Big 3 Furious After Trump&rsquo;s Trade Deal With Japan\" width=\"2000\" height=\"1125\" data-src=\"https:\/\/www.carscoops.com\/wp-content\/uploads\/2025\/07\/DLF5539-copy-1024x576.jpg\" data-type=\"inarticle-image\" \/><\/p>\n<\/figure>\n<p>        <\/a>  <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Japan and the US have negotiated a trade deal that [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":449,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[],"class_list":["post-447","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/klemtravalos.com\/index.php\/wp-json\/wp\/v2\/posts\/447","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/klemtravalos.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/klemtravalos.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/klemtravalos.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/klemtravalos.com\/index.php\/wp-json\/wp\/v2\/comments?post=447"}],"version-history":[{"count":2,"href":"https:\/\/klemtravalos.com\/index.php\/wp-json\/wp\/v2\/posts\/447\/revisions"}],"predecessor-version":[{"id":450,"href":"https:\/\/klemtravalos.com\/index.php\/wp-json\/wp\/v2\/posts\/447\/revisions\/450"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/klemtravalos.com\/index.php\/wp-json\/wp\/v2\/media\/449"}],"wp:attachment":[{"href":"https:\/\/klemtravalos.com\/index.php\/wp-json\/wp\/v2\/media?parent=447"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/klemtravalos.com\/index.php\/wp-json\/wp\/v2\/categories?post=447"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/klemtravalos.com\/index.php\/wp-json\/wp\/v2\/tags?post=447"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}