General Motors has grown increasingly concerned over the potential for new automotive tariffs under the Trump administration and issued a stern warning: prepare for a shrunken GM.
Part of the two-page document submitted to the Trump administration reads:
If import tariffs on automobiles are not tailored to specifically advance the objectives of the economic and national security goals of the United States, increased import 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.
The tariffs under consideration would not only apply to fully imported cars, trucks and SUVs, but also auto components used for assembly in the U.S. GM said the auto tariffs, combined with steel and aluminum taxes, would be “detrimental” to the automaker.
GM’s comments added that “eventually” the effects will show face, either in higher vehicle prices for consumers, or increased global costs that leave fewer funds for investment in the U.S. and lower working wages. Since 2009, GM has invested $22 billion in American manufacturing.
The automaker ended its submission with vouching for a modernized U.S. trade policy—ones that leverage strength in global supply chains, per GM.
Yet, the administration called GM’s comments “smoke and mirror” scare tactics, and the UAW recently condemned the automaker’s decision to build the 2019 Chevrolet Blazer in Mexico. The UAW is also unhappy over Mexican Silverado production.