Trump auto tariff threats may hit United States consumers' pockets

Trump auto tariff threats may hit United States consumers' pockets

GM announced Monday that it could close several plants in the United States and cut more than 14,000 jobs, drawing harsh criticism from the US president, who had promised to bring jobs back to America in his presidential campaign.

President Trump is incensed at General Motors-again.

But the president seemingly hasn't done the math on how cutting subsidies would actually affect GM.

GM defended the move as necessary to position the company for a changing market, as it faces weak sales for smaller cars and shifts resources towards investments in electric and autonomous vehicles. By nearly any measure,, unemployment, personal income are at their best levels ever.

"What's really disgusting is how Tim Ryan, Sherrod Brown and Dave Betras use the Lordstown issue as an excuse to criticize President Trump, who has done more to boost American jobs than any president in memory", Munroe said.

"Big Steel is opening and renovating plants all over the country", while "auto companies are pouring into the US", he said in a tweet cheering the country's strong economic growth of late. "Don't move, don't sell your house", he said.

Trump has given direction toward a broader examination of ways for the federal government to block funds to GM, the person said Wednesday.

Kudlow told reporters on Tuesday that the administration had helped GM with fuel efficiency standards and other regulations.

President Donald Trump said those jobs were coming back.

One suspects politics play a role in Trump's caterwauling: GM is closing factories in Maryland, Ohio and MI, which account for 44 electoral votes. You better get back in there soon. It's not clear precisely what, or when, action may be taken.

As Business Insider's Matthew DeBord pointed out, the threat to cut the EV credit is essentially meaningless to GM, since the credit already set to expire within the next two years.

BMW is considering building a second plant in the United States. Some forces buffeting manufacturers are the result of other Trump policies.

Trump's harsh words rattled investors, who bid down GM shares by 2.6 per cent on Tuesday after sending them up on Monday in response to the automaker's cost-cutting.

"We appreciate the actions this administration has taken on behalf of industry to improve the overall competitiveness of USA manufacturing", GM said in a statement Tuesday.

He was referring to the automaker's plan to shut down 5 factories. Workers also will be added at an SUV factory in Arlington, Texas. That largely ceremonial step has been uncertain as Canada and Mexico seek an end to their standoff with the US over steel and aluminum tariffs.

The U.S. government closed the 2018 fiscal year $779 billion in the red, its highest deficit in six years, according to the latest Treasury Department financial statements.

GM's restructuring comes less than two years after Trump praised the company for promising to invest $1 billion in its US operations.

The factory announcements likely represented GM's opening bid in contract talks with the union that start next year, said Kristen Dziczek, vice president of labor and industry with the Center for Automotive Research, an industry think tank in Ann Arbor, Michigan.

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