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Home » General Motors Warns Trump: Tariffs Could Lead to 'Smaller GM' and Fewer Jobs

General Motors Warns Trump: Tariffs Could Lead to 'Smaller GM' and Fewer Jobs

July 2, 2018
The Guardian

The car giant — which employs 180,000 people worldwide — became the second famous U.S. brand to warn of the dangers of Trump’s escalating trade dispute. Last week Harley-Davidson said the levies would force it to relocate some production overseas — a warning that drew a furious response from Donald Trump.

The Trump administration launched an investigation into whether imported vehicles posed a national security threat in May, and Trump has repeatedly threatened to quickly impose a 20-percent import tariff on vehicles.

The largest U.S. automaker said in comments filed on Friday with the U.S. commerce department that overly broad tariffs could “lead to a smaller GM, a reduced presence at home and abroad for this iconic American company, and risk less — not more — U.S. jobs.”

GM said the tariffs could hike vehicle prices and reduce sales. Even if automakers opted not to pass on higher costs “this could still lead to less investment, fewer jobs, and lower wages for our employees. The carry-on effect of less investment and a smaller workforce could delay breakthrough technologies.”

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KEYWORDS Automotive Global Logistics Global Supply Chain Management Global Trade Management HR & Labor Management Logistics North America Regulation & Compliance SC Finance & Revenue Management SC Planning & Optimization SC Security & Risk Mgmt Technology
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