US auto tariffs could lead to job cuts: GM
General Motors warned Friday that President Trump’s threatened tariffs on imported vehicles could lead to “a smaller GM,” isolate US businesses from the global marketplace and cause job losses.
“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 — US jobs,” the Detroit-based automaker said in comments filed with the Commerce Department, The Street reported.
“Combined with the other trade actions currently being pursued by the US Government — namely the Section 232 Steel and Aluminum tariffs and the Section 301 tariffs against Chinese imports — the threat of addi- tional tariffs on automobile imports could be detrimental to our company. At some point, this tariff impact will be felt by customers,” GM said.
Trump announced in May that Washington would investigate the need for tariffs on automobiles and automotive parts.
Team Trump is reportedly eyeballing a 25 percent tariff. Trump said in a tweet on Tuesday that the study of tariffs on cars from the European Union was wrapping up.
“We are finishing our study of Tariffs on cars from the E.U. in that they have long taken advantage of the U.S. in the form of Trade Barriers and Tariffs. In the end it will all even out — and it won’t take very long!” Trump tweeted.
GM shares closed Friday down 2.8 percent, to $39.40.