Trump raises prospect of import auto tariff after GM cutback plan

Gladys Abbott
November 30, 2018

TRUMP'S tweet: "General Motors is very counter to what other auto, and other companies are doing". The president has threatened to yank all subsides to the company.

But GM shares fell sharply after Trump's tweets, closing down 2.6 per cent at $36.69.

"They underscored their concerns for the workers, for the communities and for the families that are affected by this decision", a senior Canadian official told reporters.

While it's true that GM, like other US automakers, has received substantial federal assistance over the years - including a almost $50 billion bailout in 2009 - experts cast doubt on the idea that Trump could unwind federal aid for the company by executive fiat. Most importantly he said he wanted to stop the job loss the region has seen.

"The reason that the small truck business in the such a go to favorite is that, for many years, Tariffs of 25% have been put on small trucks coming into our country". The chances of Xi and Trump's meeting resulting in a trade deal is 40%, according to a bulletin published by Maine Pointe.

About 1 million electric vehicles have been sold in the USA, or just more than 1 percent of the nation's fleet, E&E News recently reported.

A White House rebuke to GM would fly in the face of long-held Republican opposition to picking winners in the marketplace.

Brown asked the president to back a bill he introduced that he said would do more to encourage automakers to manufacture in America.

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Here's another problem for Mr. Trump: Any change in the EV credit would have to originate with Congress, which authorizes spending. Rather, the company said it was responding to broader shifts in the auto industry towards electric, driverless vehicles that require fewer mechanical engineers and more software-wranglers.

White House press secretary Sarah Huckabee Sanders did not elaborate as to what cuts could be enacted.

Senate Democratic Leader Charles Schumer on Tuesday criticized Trump for "overpromising" as a candidate about protecting against plant closures if he was elected.

In a statement Tuesday afternoon, GM tried to appease the Trump administration while justifying the decisions it announced Monday. "Get smart Congress", Trump wrote. GM then started offering buyouts to 18,000 workers, before moving on to the plant closures announced this week. The plant already employs 10,000 workers.

"It's the classic Trump thing of policies he supports working against goals he also supports", Dutta added.

As of October, there were roughly 382,000 in the manufacturing of primary metals such as steel, down from 622,000 jobs in 2000.

GM said it has invested more than $22 billion in USA operations since 2009, when it exited bankruptcy protection.

But GM did say last month it expects to spend $1 billion more for commodities like steel and aluminum next year.

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