GM warns US import tariffs could lead to ‘smaller’ company, fewer jobs

GENERAL Motors Co warned that expansive US tariffs on imported vehicles being considered by the Trump administration could lead to a ‘a smaller GM’ with fewer jobs while isolating US businesses from the global market.

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

The largest US automaker said in comments filed with the US 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 – US jobs.”

GM, which makes some vehicles for the US market in Mexico and Canada, 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,” GM said.

GM operates 47 US manufacturing facilities and employs about 110,000 people in the United States.

It buys tens of billions of dollars worth of parts from US suppliers every year, and has invested over US$22 billion in US manufacturing operations since 2009.

“The overbroad and steep application of import tariffs on our trading partners risks isolating US businesses like GM from the global market that helps to preserve and grow our strength here at home,” GM said. — Reuters