GM may slash American jobs because of Trump tariffs


EU President Jean-Claude Juncker plans to visit Washington next month to meet with Trump to discuss trade, a spokesperson for Juncker said Friday.

General Motors warned on Friday that expansive USA tariffs on imported vehicles being considered by the Trump administration could lead to "a smaller GM" and risks isolating United States businesses from the global market.

GM also warned that the additional auto tariffs - on top of the steel and aluminum tariffs already in place - would at some point trickle down and be felt by customers, affecting demand for new vehicles.

"If import tariffs on automobiles are not tailored to specifically advance the objectives of the economic and national security goals of the United States, increased import tariffs could lead to a smaller GM, a reduced presence at home and overseas for this iconic American company, and risk less - not more -", GM wrote in comments submitted Friday. "We want to explain how tariffs on auto imports may jeopardize them both".

Its comments echoed those from two major US auto trade groups on Wednesday, when they warned that tariffs of up to 25 percent on imported vehicles would cost hundreds of thousands of auto jobs, dramatically raise prices on vehicles and threaten industry spending on self-driving cars.

GM also highlighted its record on job creation, a key objective of Mr. Trump's trade policy.

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"A tariff is a tax and it will be paid by American consumers", Mazda stated. "Even the Toyota Camry, the best-selling vehicle in America, made in Georgetown, Kentucky, would face $1,800 in increased costs".

The remarks were made to the Department of Commerce, which is investigating whether to recommend the tariffs.

"Ultimately, this cost will likely be passed along to consumers in the form of higher prices", the Japanese auto giant said.

General Motors Co. delivered a harsh warning to the Trump administration, saying that a 25 percent tariff would likely lead them to reduce US operations and cut jobs.

"The correlation between a decline in vehicle sales in the United States and the negative impact on our workforce here, which, in turn threatens jobs in the supply base and surrounding communities, can not be ignored", the company said in the statement.

Last year, the United States exported 2 million automobiles but, Yerxa said, that number can grow if the government focuses on opening foreign markets "instead of raising barriers and costs here at home".