Welcome to the Daily 5 report for Wednesday, July 23.
It looked like a fabulous breakthrough for U.S. trade with Japan — followed by a global stock market surge. President Donald Trump's latest trade deal is expected to cut tariffs on auto imports from Japan to 15 percent. Tariffs on imports from Canada and Mexico will stand at 25 percent until final agreements can be reached with the U.S. neighbors. And that's the rub for the Detroit 3.
The American Automotive Policy Council, which represents Ford, General Motors and Stellantis, said "any deal that charges a lower tariff for Japanese imports with virtually no U.S. content than the tariff imposed on North American-built vehicles with high U.S. content is a bad deal for U.S. industry and U.S. autoworkers."
This will increase the urgency for the Trump administration to reach deals with Canada, Mexico, Europe and others.
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The deal with Japan is headlined by $550 billion in loans and guarantees for U.S. investment from Japanese government-affiliated institutions "to build resilient supply chains in key sectors like pharmaceuticals and semiconductors," Japanese Prime Minister Shigeru Ishiba said in a Reuters story.
As we've written here before, Trump's negotiations with key trading partners will take time and patience. Japanese leaders carefully held back from making critical statements as talks continued — which now appears to be a successful strategy. Japan's patience also yielded a rare Trump policy reversal on the Nippon Steel acquisition of U.S. Steel.
Now the question is whether Canada, Mexico and Europe can exhibit that same kind of patient Trump diplomacy. We'll know more after Trump's next deadlines on Aug. 1.
In another automotive game-changing report, the EPA is preparing to follow through on Trump's promise to rewrite greenhouse gas emissions policies, potentially with great benefits to producers of internal combustion engine cars.
Limits on vehicle greenhouse gas emissions will be eliminated under the developing policy change, according to The Washington Post.
Finally, Acura will end production of its TLX midsize sport sedan this month to align with the changing needs of its customers, Carly Schaffner reported in this story. The TLX, in its second generation, is one of two remaining sedans in the lineup.
That's it for now. Have a great rest of your day. If you want to read this story in your browser, click here.
— Philip Nussel, online editor
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