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GM warns import tariffs may lead to fewer United States jobs

03 July, 2018, 02:30 | Author: Sara Gill
  • The General Motors Canada office in Oshawa Ont

The group cited studies on the impact tariffs would have on the U.S. economy, warning the Trump administration about "substantial job losses".

"The penalties we could incur from tariffs and increased costs will be detrimental to the future industrial strength and readiness of manufacturing operations in the United States, and could lead to negative consequences for our company and USA economic security", GM said in the Friday filing.

"They should build them in this country!"

In comments submitted to the Commerce Department, automobile manufacturer General Motors warned of the potentially disastrous effects President Donald Trump's newest, impending tariffs could have on the economy, the New York Times reports.

And as the president continues to ratchet up the rhetoric on imposing tariffs to "make America great again", and protect our "national security", the noose is tightening around the necks of large and small companies across the country and the globe.

"America does not go to war in a Ford Fiesta", the group said.

A 25-percent tariff on imported vehicles and vehicle components would result in a 1.5 percent decline in production and cause 195,000 U.S. workers to lose jobs over a 1- to 3-year period or possibly longer, according to the Peterson Institute for International Economics.

On Monday, U.S. motorcycle maker Harley-Davidson announced that it would move production of motorcycles shipped to the European Union from the United States to its worldwide facilities, in an effort to avoid the possible retaliatory tariffs imposed by the EU. "They send a Mercedes in, we can't send our cars in". The Commerce Department launched the probe under Section 232 of the 1962 Trade Expansion Act, the same provision used to impose steel and aluminum tariffs.

Under the trade statute, Mr Ross has until February to conclude the inquiry.

German automakers are said to be urging the Trump administration and the European Union to set vehicle tariffs to 0%. The duties would make imported cars more expensive, while also potentially hitting USA producers by making parts sourced from other countries pricier.

GM's message came as a surprise because the company has kept close contact with the Trump administration, James Albertine, analyst with Consumer's Edge Research told Bloomberg TV.

Barra had earlier tried to stay on good terms with Trump.

In a stern warning to the US government, General Motors said Friday it would have to slash jobs if the Trump administration expands USA tariffs on imported vehicles.

Now, the Detroit-based maker of Chevrolet, Cadillac, Buick and GMC vehicles is warning that additional tariffs - on top of those recently slapped on steel, aluminium and Chinese products - could hurt GM and ultimately its customers. The Camry would see a cost increase of about $1,800, which would be passed on to buyers in the form of higher prices, Toyota said.

Last year, the United States exported 2 million automobiles but, Yerxa said, that number can grow if the government focuses on opening foreign markets "instead of raising barriers and costs here at home".



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