The recent trade agreement between the US and UK has given the Trump administration a much-needed economic win, but US automakers are sounding the alarm.

Under the new agreement, British automakers will be able to import 100,000 vehicles per year for a 10% tariff. This is significantly lower than the 25% tariff placed on vehicles and parts coming into the US from Canada and Mexico, two of the countries US automakers rely on the most.

A statement by the American Automotive Policy Council (AAPC), which represents Detroit’s automakers, points out that British automakers will be able to import the same number of vehicles they currently import for less than US automakers can make and sell domestic vehicles.

“The U.S. automotive industry is highly integrated with Canada and Mexico; the same is not true for the U.S. and UK. We are disappointed that the administration prioritized the UK ahead of our North American partners. Under this deal, it will now be cheaper to import a UK vehicle with very little U.S. content than a USMCA compliant vehicle from Mexico or Canada that is half American parts. This hurts American automakers, suppliers, and auto workers. We hope this preferential access for UK vehicles over North American ones does not set a precedent for future negotiations with Asian and European competitors,” said Governor Matt Blunt, president of the American Automotive Policy Council.

The AAPC’s statement illustrates the issue facing American companies in an uncertain economic environment. The tariffs, trade wars, and now trade deals, all create new situations that US companies must navigate.

Only time will tell if the AACP’s warning is accurate but, if it is, it could spell major trouble for the US automotive industry.