Donald Trump, the US administration 's top tariff for automobiles, has pushed the country' s major allies into a dilemma.

It is likely that automobile tariffs will not only hurt the economies of each country, but will also lead to unfavorable bilateral agreements.

Experts cited the EU, Japan, South Korea, Mexico, and Canada, which account for more than 90 percent of US import cars as the most impacted area of ​​US auto duties.

Among these US allies, Mexico has reached an agreement on a new trade treaty to replace the North American free trade agreement.

Mexico opted to avoid tariffs as the US drove them to choose between high tariffs and agreements.

The bilateral agreements announced by the US Trade Representative highlight the disadvantage of Mexico.

Only 75% of the parts produced in the United States or Mexico were subject to tariff exemption, and 40 to 45% of the automotive parts were produced at a workplace that gave at least $ 16 minimum hourly pay.

Mexico, which imports low-cost parts and hires low-wage workers to maintain its competitiveness, is expected to suffer a minor blow.

According to a private agreement reached by Reuters, Mexico has agreed to limit the number of automobiles to be exempted from tariffs when the Trump Administration 's high - tariffs come into effect.

President Trump is pushing for an agreement with Mexico to choose whether to accept it or accept car duties.

The White House said it would sign a 90-day trade agreement with Mexico and sign it as a party to the agreement if it wants it.