General Motors warns Trump: tariffs could lead to ‘smaller GM’ and fewer jobs
Car giant, which utilizes 18,000 people worldwide, follows Harley-Davidson in cautioning Trump that tariffs policy is mistake
General Motors warned on Friday that expansive US tariffs on imported vehicles being considered by the Trump administration could lead to a smaller GM and perils isolating US firms from the global market.
The car giant which hires 180,000 people worldwide became the second famous US brand this week to warn of the dangers of Trumps escalating trade dispute. This week Harley-Davidson said the levies would force it to relocate some production overseas a warning that drew a furious reply 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 enforce a 20% import tariff on vehicles.
The largest US automaker said in comments filed on Friday 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 hazard less not more US jobs.
GM said the tariffs could hike vehicle costs and reduce sales. Even if automakers opted not to pass on higher expenditures 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.
Toyota filed separate remarks opposing the tariffs on Friday saying they would threaten US manufacturing, chores, exportations, and economic prosperity.
The company noted that Trump has repeatedly praised the automaker for investing in the United States, including a new $1.3 bn joint venture assembly plant in Alabama with Mazda.
These investments reflect our confidence in the US economy and in the power of the concerned authorities taxation cuts, Toyota said in its submission.
Toyota noted that international automakers assembling vehicles in the United States are based in countries including Japan, German and South Korea that are Americas closest allies.
The company added it was hard to foresee a situation in which any of them would engage in an armed conflict with the US or cut off furnishes of defense materials, and if they did, the United States would have an easy recourse of simply seizing their US plants.
The car corporations commentaries come after groups representing Americas largest retailers, car manufacturers and the agriculture industry warned of the serious negative economic the health effects of the trade dispute and called on Congress to support a bill that would rein in the presidents power to impose tariffs by invoking a threat to national security.
It is now also increasingly clear that the way the steel and aluminium tariffs have been used will be translated into retaliatory tariffs from our largest trading partners and closest friends, and that retaliation will have serious negative economic impacts on the United States, they wrote in a letter to US senators.
Reuters contributed to this article