It only took one day for complaints to roll in. Also, Ford is hiking prices.
Hooray! A Tentative Deal with the UK, Only 199 Deals to Go
Yesterday, I commented Hooray! A Tentative Deal with the UK, Only 199 Deals to Go
My post initially said 299 deals to go. I added a correction. Trump promised 200 deals, not 300.
Today …
Automakers Not Happy
Please note Big Three Automakers Blast Trump’s UK Trade Deal
A group representing General Motors, Ford and Stellantis blasted President Donald Trump’s trade deal announced with the United Kingdom, saying it would harm the U.S. auto sector.
British carmakers will be given a quota of 100,000 cars a year that can be sent to the United States at a 10% tariff rate, almost the total Britain exported last year, compared to 25% for Mexico and Canada and nearly all other countries.
“Under this deal, it will now be cheaper to import a UK vehicle with very little U.S. content than a USMCA compliant vehicle from Mexico or Canada that is half American parts,” said the American Automotive Policy Council, which represents the Detroit Three automakers. “This hurts American automakers, suppliers, and auto workers.”
U.S. automakers are concerned this could be a template for other agreements that could put vehicles they assemble in Canada or Mexico at a disadvantage. The White House did not immediately respond to a request for comment.
One would think, well maybe, we are dealing with Trump here, that someone would have consulted the auto industry over this carve out.
However, there was pressure to complete a deal, any deal, given Trump’s promise of 200 deals.
200 Deals Made Already!
For discussion, please see Trump Tells Time Magazine He Has Made 200 Deals Already, Refused to Name Any
Your trade adviser, Peter Navarro, says 90 deals in 90 days is possible. We’re now 13 days into the point from when you lifted the reciprocal, the discounted reciprocal tariffs. There’s zero deals so far. Why is that?
No, there’s many deals.
When are they going to be announced?
You have to understand, I’m dealing with all the companies, very friendly countries. We’re meeting with China. We’re doing fine with everybody. But ultimately, I’ve made all the deals.
Not one has been announced yet. When are you going to announce them?
I’ve made 200 deals.
You’ve made 200 deals?
100%.
I’m just curious, why don’t you announce these deals that you’ve solidified?
I would say, over the next three to four weeks, and we’re finished, by the way.
You’re finished?
We’ll be finished.
Oh, you will be finished in three to four weeks.
I’ll be finished. Now, some countries may come back and ask for an adjustment, and I’ll consider that, but I’ll basically be, with great knowledge, setting—ready? We’re a department store, a giant department store, the biggest department store in history.
200 Deal Countdown
That interview was on April 25. Trump said 200 deals would be “finished” in 3-4 weeks.
Let’s call it four weeks. Two weeks have gone by.
Four weeks will take us to May 23.
Ford Hikes Prices on Mexico-Produced Models
While waiting for deals, please note Ford Hikes Prices on Mexico-Produced Models
Ford Motor (F.N), has hiked prices on three of its Mexico-produced models effective May 2, becoming one of the first major automakers to adjust sticker prices following U.S. President Donald Trump’s tariffs.
Prices on the Mustang Mach-E electric SUV, Maverick pickup and Bronco Sport will increase by as much as $2,000 on some models, according to a notice sent to dealers, which was reviewed by Reuters.
Questions of the Day
- How many more deals will be announced in the next two weeks?
- How long will this tentative deal with the UK last given the big three automaker objections?
Bonus Question
Who is paying those Ford price hikes, US consumers or Mexico?
Meanwhile, we can expect 199 more deals by May 23. I will be riveted to my chair waiting for the announcements.