---
title: "Commerce Secretary Howard Lutnick Dismisses 'Silly' Concerns Of US Automakers' Over Japan Trade Deal, Says They're 'Cool' With It"
description: "U.S. Commerce Secretary Howard Lutnick stated that American auto CEOs support President Trump's new trade deal with Japan, which may lower tariffs on Japanese car imports. Despite concerns from the Am"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/250146619.md"
published_at: "2025-07-25T12:01:56.000Z"
---

# Commerce Secretary Howard Lutnick Dismisses 'Silly' Concerns Of US Automakers' Over Japan Trade Deal, Says They're 'Cool' With It

> U.S. Commerce Secretary Howard Lutnick stated that American auto CEOs support President Trump's new trade deal with Japan, which may lower tariffs on Japanese car imports. Despite concerns from the American Automotive Policy Council, Lutnick dismissed them as 'silly.' The deal imposes a 15% tariff on Japanese cars while U.S. automakers face a 25% tariff on vehicles produced in Canada and Mexico. The agreement is expected to create jobs but has drawn criticism for potentially increasing costs for American consumers. Japan's bond yields surged, indicating economic instability.

The U.S. Commerce Secretary **Howard Lutnick** has disclosed that American auto CEOs are in favor of President **Donald Trump’s** new trade deal with Japan.

**What Happened**: Lutnick, in an interview on CNBC on Thursday, stated that American auto CEOs have expressed their acceptance of the new trade agreement. The deal, announced by Trump earlier this week, could potentially levy lower tariffs on Japanese car imports compared to vehicles produced by U.S. companies in Canada and Mexico.

Despite objections from the **American Automotive Policy Council**, a group representing major U.S. automakers such as **General Motors** GM, **Ford** F, and **Stellantis** STLA, Lutnick dismissed their concerns. "Oh, my God, that's just so silly," said the Commerce Secretary, emphasizing that there would be no tariffs on the U.S. automakers if they build in America.

Under the new agreement, Japan will face a 15% tariff on cars exported to the U.S., while American automakers will be hit with a 25% tariff on vehicles they produce in Canada and Mexico and bring into the U.S. This has led to a surge in the shares of Japanese automakers such as **Toyota** TM, **Honda** HMC, **Nissan** NSANY, and **Mazda** MZDAY.

However, Lutnick maintained that the CEOs he spoke with did not oppose the deal.

**Why It Matters**: This new trade agreement comes on the heels of Trump announcing a $550 billion trade deal with Japan, which is expected to create hundreds of thousands of jobs. The deal also involves Japan opening its markets to US cars, trucks, rice, and other agricultural products, while agreeing to a reciprocal tariff of 15% on US imports.

However, not everyone is optimistic about the deal. Economist **Justin Wolfers** argues that the deal essentially results in a tax increase for American consumers. He further states that the narrative surrounding the deal is confusing and misleading.

Moreover, the acceptance of the deal by Japan is seen by some market commentators as a sign of a deeper economic crisis. They suggest that Japan accepted an unfavorable deal involving a $550 billion investment in the US, with the US receiving 90% of the profits.

Following the announcement of the deal, Japan’s 10-year bond yields surged to 1.59%, a level not seen since 2008, indicating potential economic instability.

-   **Howard Lutnick Says Trump’s August 1 Tariff ‘Hard Deadline’ Is Final — Smaller Nations Face 10% Base Rate  
    **

*Image via Shutterstock*

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.