Trump studying new auto tariffs after General Motors restructuring

Andrew Cummings
November 30, 2018

But the law stipulates that the credit begins to phase out after an automaker sells a total of 200,000 eligible EVs, like GM's Chevy Volt, built near a factory in Detroit.

U.S. has already imposed "precious panel" on half of the Chinese good which were exported to United States markets each year, and has also threatens to target remaining $267 billion.

Contradicting President Donald Trump's November 29 claim that it has announced a new plant in the USA, the automaker said it is only considering opening a second facility.

Trump boasted on Twitter Wednesday that Steel Dynamics, based in Fort Wayne, Indiana, was opening a new plant in the Southwest, creating 600 jobs. Auto companies are pouring into the US, including BMW, which just announced a major new plant. Tesla surpassed 200,000 cumulative EV sales in the USA earlier this year, and Bloomberg NEF analysts project that GM will probably exceed that mark this quarter.

BMW South Carolina Factory

Not quite. Ford just last month announced that it would be forced to lay off employees as it cuts costs. Kudlow, who met with Barra on Monday, said that Trump felt betrayed by GM, which the government had been trying to help.

President Donald Trump and Democratic Sen. Toyota has also threatened to cut 1,000 jobs in the USA.

"The president wants to see American companies build cars here in America not build them overseas and he is hopeful that GM will continue to do that here", she said. "These actions are expected to increase annual adjusted automotive free cash flow by $6 billion by year-end 2020 on a run-rate basis". Rick Schostek, executive vice president for Honda North America, expressed concerns about the steel tariffs during a Senate Finance Committee hearing in late September.

"The EU has a retaliation tariffs list ready if the United States imposes autos tariffs on the EU", she said Wednesday.

Trump unleashed on Twitter a day after GM announced it would shutter five plants and slash 14,000 jobs in North America, with numerous job cuts coming from the Midwest, where the president has promised a manufacturing rebirth. The German automaker now imports engines and transmissions from Europe for SUVs made in the US, and it's building a new factory in Mexico.

BMW already operates its biggest plant in the world in Spartanburg, South Carolina.

"That has slowly made cars like the Volt and Cruze pointless to buy".

GM did not blame the threat of tariffs for this week's plant closing announcement.

The US has agreed with Japan and the European Union to hold off on additional tariffs on auto imports while trade negotiations are underway.

Trump has long wanted to impose 25% tariffs on all auto imports, and he launched the process to do so in June.

A study from the Peterson Institute of International Economics found that a 25% auto tariff would cause auto production in the United States to fall by 1.5% over three years and result in a net loss of 195,000 jobs in that same time frame.

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