Auto tariffs will hurt U.S. economy, GM warns

The General Motors Canada office in Oshawa Ont

It warned that the potential tariff on cars and parts would have a negative impact on all manufacturers, increasing the cost of imported vehicles as well as those built in the USA, but rely on parts from overseas.

President Donald Trump, who directed his administration to investigate whether auto imports weaken national security, has threatened to slap European vehicle imports with a 20% tariff.

In a stern warning to the US government, General Motors said Friday it would have to slash jobs if the Trump administration expands USA tariffs on imported vehicles.

"Increased import tariffs could lead to a smaller GM, a reduced presence at home and risk less - not more - usa jobs", the nation's largest carmaker said in comments submitted Friday to the commerce department.

Several of the worlds leading automakers, including GM and Toyota Motor Corp., filed comments this week detailing concerns about the proposed 25 per cent tariffs on USA imports of vehicles and automotive parts.

Commerce Secretary Wilbur Ross intends to complete its investigation into the vehicle import tariff under section 232 of the Trade Expansion Act by late July or August. The administration is said to be considering auto tariffs of as much as 25 per cent.

The exemption, however, was revoked in May when Trump levied a 25 percent tariff on steel imports and a 10 percent tariff on aluminum imports, provoking those allies to respond with retaliatory trade measures. The president's threat to pull out of the North American Free Trade Agreement could hurt the industry's supply chain, which integrates operations in the United States, Canada and Mexico.

"In fact, the US auto industry is prospering, and the vast majority of industry stakeholders do not support these proposed tariffs", the Chamber said. It buys tens of billions of dollars' worth of parts from US suppliers every year, and has invested over 22 billion dollars in USA manufacturing operations since 2009.

Who Is Alexandria Ocasio-Cortez?
There are almost 236,000 Democrats registered in the 14th Congressional District , which covers parts of the Bronx and Queens. She presented voters with a visionary program for change rather than another defensive campaign aimed at holding the line.

GM said the tariffs could hike vehicle prices and reduce sales.

And as the president continues to ratchet up the rhetoric on imposing tariffs to "make America great again", and protect our "national security", the noose is tightening around the necks of large and small companies across the country and the globe.

In an interview with Maria Baritromo that aired Sunday morning on Fox News's "Sunday Morning Futures", Trump said his political supporters are a close mirror of Harley's customer base - and they are unhappy with any plan to expand overseas production. GM imports parts for cars that it makes in the United States.

The carmaker now imports all vehicles it sells in the US, mostly from Japan and Mexico, and is building a new auto factory in Huntsville, Alabama, with Toyota Motor Corp.

GM is the second USA manufacturing giant that warned of the dangers of Trump's tariff policies this week.

Both GM and Toyota warned that US consumers would bear the brunt of increased costs.

The deadline to submit comments was Friday.

U.S. auto production has doubled over the past decade, and the sector employs almost 8 million Americans - almost 50 percent more than it employed in 2011, according to the U.S. Chamber of Commerce.

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