UAW ‘deeply angered’ by Trump’s 15% tariff deal with Japan

WASHINGTON – President Donald Trump announced a trade deal with Japan earlier this week, and the United Auto Workers are “deeply angered” by it.

Trump announced that there would be a 15% tax on goods imported from Japan. The 15% tax is a meaningful drop from the 25% rate that Trump, in a recent letter to Japanese Prime Minister Shigeru Ishiba, said would be levied starting Aug. 1.

The UAW spoke out against the deal in the following statement:

The UAW is deeply angered by the Trump administration’s announced trade deal with Japan. What we’ve seen so far makes one thing clear: American workers are once again being left behind.

For decades, Japanese automakers have exploited open access to the U.S. market while failing to do right by American workers. Now, instead of addressing the problem, this deal gives them another break—at the expense of the very companies and workers that built the American auto industry into the global standard for good jobs and world-class products.

The UAW has pushed for well-crafted tariffs as a tool to level the playing field, bring back good jobs, and drive investment in American manufacturing. We know tariffs can work—but the execution here falls far short. Shifting timelines and moving goalposts have undermined business confidence and delayed investment. So far, only GM has stepped up with serious reshoring efforts.

Rather than building on that momentum—rewarding companies investing in union jobs—this deal hands a win to transnational automakers that rely on low-road labor practices: substandard wages, excessive temps, and union-busting.

Now, those same companies stand to benefit from lower tariffs, while unionized automakers—who could quickly create tens of thousands of good jobs using existing capacity—are left with fewer incentives to do so. Once again, American workers are being forced to suffer the consequences.

A better deal would have held Japanese automakers to the same standards U.S. workers have fought for at GM, Ford, and Stellantis: living wages, quality health care, secure retirements, job stability, and the freedom to form unions without intimidation.

If this becomes the blueprint for trade with Europe or South Korea, it will be a major missed opportunity. After decades of failed trade policy, American workers don’t need another deal that pushes them down for demanding a better life.

We need trade deals that raise standards—not reward the race to the bottom. This deal does the opposite.

UAW Statement

U.S. automakers also worry that President Donald Trump’s agreement to tariff Japanese vehicles at 15% would put them at a competitive disadvantage, saying they will face steeper import taxes on steel, aluminum and parts than their competitors.

“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,” said Matt Blunt, president of the American Automotive Policy Council, which represents the Big 3 American automakers, General Motors, Ford and Jeep-maker Stellantis.

Blunt said in an interview the U.S. companies and workers “definitely are at a disadvantage” because they face a 50% tariff on steel and aluminum and a 25% 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 Trump’s promises there can be genuine tradeoffs 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.

Trump portrayed the trade framework as a major win after announcing it on Tuesday, saying it would add hundreds of thousands of jobs to the U.S. economy and open the Japanese economy in ways that could close a persistent trade imbalance. The agreement includes a 15% tariff that replaces the 25% import tax the Republican president had threatened to charge starting on Aug. 1. Japan would also put together $550 billion to invest in U.S. projects at the “direction” of the president, the White House said.

The framework with Japan will remove regulations that prevent American vehicles from being sold in that country, the White House has said, adding that it would be possible for vehicles built in Detroit to be shipped directly to Japan and ready to be sold.

But Blunt said that foreign auto producers, including the U.S., Europe and South Korea, have just a 6% share in Japan, raising skepticism that simply having the open market that the Trump administration says will exist in that country will be sufficient.

“Tough nut to crack, and I’d be very surprised if we see any meaningful market penetration in Japan,” Blunt said.

Asked at Wednesday’s briefing about whether Trump’s sectoral tariffs such as those on autos were now subject to possible change, White House press secretary Karoline Leavitt said that the issue had been going through the Commerce Department.

The framework with Japan was also an indication that some nations simply saw it as preferential to have a set tariff rate rather than be whipsawed by Trump’s changes on import taxes since April. But for the moment, both Japan and the United Kingdom with its quotas on auto exports might enjoy a competitive edge in the U.S.

“With this agreement in place it provides Japan with a near-term operating cost advantage compared to other foreign automakers, and even some domestic U.S. product that uses a high degree of both foreign production and parts content,” said Karl Brauer, executive analyst at iSeeCars. “It will be interesting to see if this is the first domino to fall in a series of foreign countries that decide long-term stability is more important that short term disputes over specific tariff rates.”

Autos Drive America, an organization that represents major Japanese companies Toyota, Honda and Nissan and other international automakers, said in a statement that it is “encouraged” by the announced trade framework and noted its members have exceeded domestic automaker production for the past two years.

The statement urged “the Trump administration to swiftly reach similar agreements with other allies and partners, especially the European Union, South Korea, Canada and Mexico.”

The Japanese framework could give automakers and other countries grounds for pushing for changes in the Trump administration’s tariffs regime. The president has previously said that he values flexibility in negotiating import taxes. The USMCA is up for review next year.

Ford, GM and Stellantis do “have every right to be upset,” said Sam Fiorani, vice president at consultancy AutoForecast Solutions. But “Honda, Toyota, and Nissan still import vehicles from Mexico and Canada, where the current levels of tariffs can be higher than those applied to Japanese imports. Most of the high-volume models from Japanese brands are already produced in North America.”

Fiorani noted that among the few exceptions are the Toyota 4Runner, the Mazda CX-5 and the Subaru Forester, but most of the other imports fill niches that are too small to warrant production in the U.S.

“There will be negotiations between the U.S. and Canada and Mexico, and it will probably result in tariffs no higher than 15%,” Fiorani added, “but nobody seems to be in a hurry to negotiate around the last Trump administration’s free trade agreement.”

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St. John contributed from Detroit.