Commerce Secretary Howard Lutnick said Thursday that American auto CEOs told him they are "cool with" President Donald Trump's caller commercialized deal, which could enactment little tariffs connected cars imported from Japan than connected cars made by U.S. companies successful Canada and Mexico.
Lutnick brushed disconnected complaints from a radical representing General Motors, Ford and Stellantis that Trump's program could springiness Japanese automakers an vantage implicit the "Big Three" Detroit car companies.
"Oh, my God, that's conscionable truthful silly," Lutnick said connected CNBC's "Squawk connected the Street" aft being asked astir disapproval by the American Automotive Policy Council.
The statement Trump announced Tuesday would spot Japan judge a tariff of 15% connected cars it exports to the U.S. successful summation to pledging $550 cardinal successful U.S. investments.
But American car companies volition beryllium connected the hook for a 25% levy connected cars they marque successful Canada and Mexico and import into the U.S. nether tariffs imposed by Trump successful April.
Shares of Japanese car brands Toyota, Honda, Nissan and Mazda soared connected quality of Trump's commercialized woody with Japan — but U.S. carmakers sounded alarms.
"Any woody that charges a little tariff for Japanese imports with virtually nary U.S. contented than the tariff imposed connected North American-built vehicles with precocious U.S. contented is simply a atrocious woody for U.S. manufacture and U.S. car workers," Matt Blunt, caput of the American Automotive Policy Council, said Tuesday.
Lutnick connected Thursday told CNBC that "PR people" are "ginning up" discontent implicit the deal. He said helium spoke to the CEOs whose companies are represented by the radical earlier Thursday and that they bash not reason the pact.
"They are chill with it," Lutnick said.
He said helium understood that U.S. companies would beryllium "a small bummed out" to spot tariffs connected imports of Japanese-built autos autumn from 25% to 15%.
But Lutnick said home car companies could debar paying tariffs connected cars they physique successful Canada and Mexico by moving their manufacturing facilities to the United States.
Read much CNBC authorities coverage
"Come on, there's nary tariff if you physique it successful America," helium said. "American manufacturers are going to bash highly good successful America — arsenic agelong arsenic they physique it successful America. You physique it successful America, you're good," helium said.
Blunt did not instantly respond to CNBC's petition for remark connected Lutnick's remarks.
Trump's tariffs person already taken a toll connected the Big Three automakers.
GM successful May issued full-year guidance that included a $4 cardinal to $5 cardinal deed from tariffs. The institution confirmed this week that tariffs cost it $1.1 billion successful the 2nd fiscal 4th of 2025.
Stellantis connected Monday said that it expects a nearly $2.7 cardinal nett loss successful the archetypal fractional of the twelvemonth that is partially owed to the effects of the tariffs.
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