The Globe and Mail reports in its Thursday edition that U.S. automakers are concerned that President Donald Trump's 15-per-cent tariff on Japanese vehicles will put them at a competitive disadvantage due to higher import taxes on steel, aluminum and parts. An Associated Press dispatch to The Globe reports that Matt Blunt, president of the American Automotive Policy Council, which represents Ford and other rivals, says, "We need to review all the details of the agreement, but this is a deal that will charge lower tariffs on Japanese autos with no U.S. content." Mr. Blunt says U.S. companies and workers "definitely are at a disadvantage" because they face a 50-per-cent tariff on steel and aluminum and a 25-per-cent tariff on parts and finished vehicles, with some exceptions for products covered under the United States-Mexico-Canada Agreement that went into effect in 2020. The domestic automaker reaction reveals the challenge of enforcing policies across the world economy, showing that for all of Mr. Trump's promises there can be genuine trade-offs from policy choices that risk serious blowback in politically important states such as Michigan and Wisconsin, where automaking is both a source of income and of identity.
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