Posted on 06/29/2018 1:16:05 PM PDT by reaganaut1
General Motors warned Friday that another wave of tariffs being considered by the Trump administration could force the company to scale back its business and cost American jobs.
In comments submitted to the Commerce Department, the automaker said that the tariffs, if approved, could drive individual vehicle prices up thousands of dollars, stifling demand. Such costs would need to be borne either by consumers or the company.
Last month, President Trump ordered an investigation into whether imported cars and automotive components could pose enough of a national security risk to warrant tariffs of as much as 25 percent. If he goes ahead, it would intensify a global trade war that has engulfed allies and adversaries. In recent months, the administration has imposed tariffs on imported steel and aluminum, along with measures targeted at China.
Carmakers, in particular, have been caught in the middle of the trade fight. They rely heavily on metals to build their cars, including parts from overseas. The president’s threat to pull out of the North American Free Trade Agreement could also hurt the industry supply chain.
Several other automakers and manufacturing organizations, including the National Association of Manufacturers, BMW and Volvo, have also submitted comments on the tariffs under consideration for foreign automakers and part suppliers.
“Increased import tariffs could lead to a smaller G.M., a reduced presence at home and abroad for this iconic American company, and risk less — not more — U.S. jobs,” General Motors wrote in its comment.
The tariffs would result in “broad-brush trade barriers that increase our global costs, remove a key means of competing with manufacturers in lower-wage countries, and promote a trade environment in which we could be retaliated against in other markets,” the company said.
(Excerpt) Read more at nytimes.com ...
UAW still ‘own’ GM??
Until they end with more jobs and greater national prosperity. Tariffs certainly worked for China, haven’t they?
MAGA
IOW - GM cars depend on overseas equipment to make American cars.
Why? Just buy American steel and aluminum and you don’t have to pay that additional cost. Plus shipping costs will be less
GM wants their cheap parts from overseas even if a lot of Americans are unemployed. They aren’t willing to buy American or pay 25% more for their parts.
They are more than happy to keep draining American wealth by selling overseas goods to us.
GM wants their cheap parts from overseas even if a lot of Americans are unemployed. They aren’t willing to buy American or pay 25% more for their parts.
They are more than happy to keep draining American wealth by selling overseas goods to us.
Cool. Fewer cars means less climate change. How can the New York Pravda, er, Times complain about that?
Yeah tariff are great for China just ask the workers who average annual pay is $4,500.
Are they globalist pussies that lay down and moan for their masters? You betcha!
Is this GM or Obama talking ?
The point of protective tariffs is to increase the price of domestic goods. If a foreign competitor’s price goes up 25% then the domestic producer can command an about equal 25% price increase. The added revenue and profit should allow the producer to add jobs.
You pay the price of the tariff.
GM is still owned by the LIB idiot unions.
You mean it raises the price of GM’s Mexican, Korean, and Chinese crap they import to us?
The material cost is negligible compared to the people cost and overhead. Since Trump just gave them a big tax break, they should have plenty of money to cover the tiny impact of steel and aluminum price increases. Somebody did the math and it was about $2 a month increase in your monthly car payment.
It will still be less to but US. Remember that industry was almost destroyed by our lack of leadership or people who decided to sacrifice Americans and enrich China the EU etc.
I think our companies need to just bite the bullet and we pay a little more for a while but the tariffs we pay sending things to EU and China will hurt them as much if not more. If we are cowards then perhaps we deserve to lose jobs because we will lose one way or the other. At least Trumps way we have a chance of winning, the other way we are doomed
Not sure I follow that - why would anyone add jobs if there is not more business? All you have described is an increase in cost - not customers.
I thought the idea was to make the foreign product more expensive - and force the market to buy a less competitive domestic product - or invest in domestic manufacturing - which in turn might add some jobs.
Yeah tariff are great for China just ask the workers who average annual pay is $4,500.
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What was their average annual pay BEFORE their nation embarked upon its mercantilist trade practices with high one-sided tariffs. And what was their national wealth and national industrial strength before undertaking those policies. Get a clue, brother.
I pick the company. Does anyone know just exactly what the cost of making any car is? Best kept secret in creation.
A new wave of tariffs COULD cause my uncle to undergo a sex change............
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