Just yesterday, President Trump announced a series of reciprocal tariffs on U.S. trading partners. The sweeping new taxes follow an earlier announcement that Trump would place a 25-percent tax on goods from Mexico and Canada, as well as a 25-percent tax on vehicles imported from outside the United States. Now, General Motors is responding by increasing production of its light duty truck models at the GM Fort Wayne assembly plant in Indiana, including the Chevy Silverado and GMC Sierra.
Per a report from Reuters, the production increase was outlined in a webcast recently sent to plant employees. Specific details concerning how much production would be increased at the Fort Wayne facility, or if Chevy Silverado or GMC Sierra production outside the U.S. would be adjusted as well, were not provided. However, according to Reuters, GM may add overtime days to the Fort Wayne production schedule, and is expected to increase employment at the facility via the hiring of “several hundred temporary workers.”
Late last month, President Trump announced a 25-percent tariff on all vehicles assembled outside of the U.S. The tax went into effect at midnight Wednesday evening. The tariff is expected to extend from fully assembled vehicles to automotive components early in May. Previously, the U.S. tariff on imported vehicles was set at 2.5 percent, making the 25-percent tax a tenfold increase.
Trump touts the move as a way to stimulate domestic manufacturing, responding to what he characterizes as a “ridiculous” global supply chain system.
“I think it’s going to lead cars to be made in one location,” Trump said last month. Trump also stated that the tariffs could provide upwards of $100 billion in annual income for the federal government. Notably, UAW President Shawn Fain, who has frequently been at odds with Trump, praised the move.
Nevertheless, analysts at The Anderson Economic Group warn that the extra costs will most likely be passed on to consumers, raising new vehicle prices by as much as $10,000 per unit at a time when most consumers already consider new vehicles to be unaffordable.
Comments
What!!! The tarrifs are actually bring jobs home!!! INCONCEIVABLE!
Supply and demand will not allow the “costs to be passed on to consumers”. Demand destruction already has been folding Stellantis and will happen to “gm” as well. They will move less units, and have to lower the price. They should have plenty of room to adjust since they had no problem adjusting them sky high during and after the plandemic.
This surely must be a delayed April Fools Day joke.
Still junk Trucks with lifter failures.
SMH….strange comment from some self-anointed Camaro dude??? You apparently aren’t too Chevy of a dude you poser.
Should add, “Due to Trump Tariffs” in headline.
Personally,, I liked seeing the sticker on the door jamb of my truck stating that my truck was proudly made in Ft. Wayne Indiana. I’m ok with sone foreign content but saddened and frustrated that about 50% of my truck is foreign. If you want to live the American dream, you have to support the American dream.
I with you…my Sierra was built in Indiana. My wife’s Dodge Durango was made in Michigan. When my grandfather was alive, as a GM employee, he only bought Buicks because they were made in Michigan. He worked at the Grey Iron plant in Saginaw and most of the Buicks he bought were made in Flint. It was a pride thing.
Now it’s time to get Orion going to producing ICE trucks instead of the EV trucks that won’t sell.
Tigger,
I suggest an edit:
Now it’s time to get Orion going to producing ICE trucks instead of sitting idle waiting to build the EV trucks that won’t sell.
Orion is building nothing now. They’re waiting on enough orders to come in for $100K electric trucks to resume operations. That day may never come.
Concur
Nice
Real jobs! Not government jobs.
Beauty… Give Trumps’s “tariff” ideas time to make positive change. Everyone that thinks this won’t work… just do some research or try to purchase a American car any European Country. Only the very wealthy drive North American cars because the taxes of up to 60% is prohibited.. Everyone will be coming to the USA for the new Business Revolution. Give your President time and Support. He will get there!