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Auto tariffs being considered after GM layoff plans

01 December 2018

Mr Trump unleashed the comments on Twitter a day after GM announced it would close down five vehicle factories and slash 14,000 jobs in North America, with numerous job cuts coming from the Midwest, where the President has promised a rebirth of manufacturing.

American International Automobile Dealers Association CEO Cody Lusk told FOX Business' Susan Li that GM failed to include in their restructuring announcement whether China's unfair trade practices affected GM's decision to cut 14,000 jobs over the next two years.

Shares of GM rose 0.7 percent to $36.95. The company says it will halt production at plants in Lordstown, Ohio; Detroit and Warren, Mich.; White Marsh, Md.; and Ontario, Canada. Trump tweeted, a reference to the taxpayer-funded bailout that helped GM after the recession a decade ago.

State and local governments are likely to offer tax breaks and other incentives to try to get GM to change its mind about the closings, said Kristen Dziczek, of the Center for Automotive Research, an industry think tank in Ann Arbor, Michigan. "I love OH. I told them, 'you're playing around with the wrong person, '" he added.

Trump captured the White House thanks in large part to the story he told - that he could reverse America's industrial decline.

Addressing the closure of the assembly plants in the US, President Donald Trump stated Wednesday that the government was studying possible vehicle tariffs. The price of those goods rose since the Trump administration imposed tariffs on those products in an effort to help United States mills.

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Following Trump's tweets on Tuesday afternoon, a person familiar with GM's financials told CNN Business that the only federal government subsidy GM now receives is a tax credit up to $7,500 for each electric auto it sells. But GM is on the cusp of reaching its subsidy limit.

White House press secretary Sarah Huckabee Sanders did not elaborate as to what cuts could be enacted.

Jawboning aside, Trump was unable to stop job losses at a Carrier Corp. air-conditioning plant in Indianapolis. Kudlow, who met with Barra on Monday, said that Trump felt betrayed by GM, which the government had been trying to help.

"The U.S. got hit harder than we did", said one Canadian government insider.

He was referring to the automaker's plan to shut down 5 factories.

"The president promised that no plants would be closed", said Brown. The factory will also make products geared to auto manufacturers and appliance makers.

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GM has received about $333.5 million in federal spending in the past 12 months, according to a USA government website that tracks federal expenditures. President Trump should not give up on getting GM to invest in Ohio. The union has vowed to fight the closures legally and in collective bargaining.

Trump also said that the tariffs, which GM warned would "undermine [its] competitiveness against foreign auto producers.", have "nothing to do" with the layoffs.

Final inspector Mary Skinner inspects the rear end of a General Motors Chevrolet Cruze at Jamestown Industries, Wednesday, Nov. 28, 2018, in Youngstown, Ohio. Those SUVs are the only models built in that plant.

The reductions could amount to as much as 8 per cent of GM's global workforce of 180,000 employees.

Trump said tariffs on cars would be effective in reviving the USA auto industry because the United States has had a 25 per cent tariff on light truck imports since 1964, which he alleges has helped shield the U.S. market from a flood of truck imports.

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Auto tariffs being considered after GM layoff plans