According to reports, the Detroit automaker plans to indicate to the Trump administration that the proposal to amend the North American Trade Agreement may cost these car companies billions of dollars and weaken their competitiveness with foreign rivals. American car companies are still trying to absorb a series of tariff measures implemented by the government last year, including tariffs on steel, aluminum, auto parts, and cars imported from Mexico and Canada. They also pointed out that Japan, South Korea, and European rivals face less tariff burdens. Now, US auto industry executives are worried that the plan proposed by Washington before starting talks with Mexican trade officials next month may push up costs even further. As far as car companies are concerned, one of the most controversial issues is Washington's requirement that cars contain at least 50% of American-made parts in order to be subject to lower tariffs. The media reported this in May. According to the estimates of the two car companies, this requirement, as well as the proposal to increase the overall vehicle localization ratio in North America from the current 75%, will increase the cost of each car company in Detroit by at least 2 billion US dollars a year. The above expenses will be superimposed on the costs that car companies have borne since last year due to various current tariff measures. The Office of the United States Trade Representative did not respond to requests for comment. Government officials, on the other hand, said that the relevant tariff measures are aimed at promoting more investment in US factories and creating jobs.

According to reports, the Detroit automaker plans to indicate to the Trump administration that the proposal to amend the North American Trade Agreement may cost these car companies billions of dollars and weaken their competitiveness with foreign rivals. American car companies are still trying to absorb a series of tariff measures implemented by the government last year, including tariffs on steel, aluminum, auto parts, and cars imported from Mexico and Canada. They also pointed out that Japan, South Korea, and European rivals face less tariff burdens. Now, US auto industry executives are worried that the plan proposed by Washington before starting talks with Mexican trade officials next month may push up costs even further. As far as car companies are concerned, one of the most controversial issues is Washington's requirement that cars contain at least 50% of American-made parts in order to be subject to lower tariffs. The media reported this in May. According to the estimates of the two car companies, this requirement, as well as the proposal to increase the overall vehicle localization ratio in North America from the current 75%, will increase the cost of each car company in Detroit by at least 2 billion US dollars a year. The above expenses will be superimposed on the costs that car companies have borne since last year due to various current tariff measures. The Office of the United States Trade Representative did not respond to requests for comment. Government officials, on the other hand, said that the relevant tariff measures are aimed at promoting more investment in US factories and creating jobs.