Donald Trump’s import tariffs could lead to fewer American jobs, General Motors warns
GM says even if carmakers opted not to pass on higher costs, tariffs ‘could still lead to less investment, fewer jobs, and lower wages for our employees’
General Motors warned on Friday that expansive US tariffs on imported vehicles being considered by the Trump administration could lead to a “a smaller GM” with fewer jobs while isolating US businesses from the global market.
The Trump administration in May launched an investigation into whether imported vehicles posed a national security threat, and US President Donald Trump has repeatedly threatened to quickly impose a 20 per cent import tariff on vehicles.
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The largest US carmaker said in comments filed with the US Commerce Department that overly broad tariffs could “lead to a smaller GM, a reduced presence at home and abroad for this iconic American company, and risk less – not more – US jobs.”
GM, which makes some vehicles for the US market in Mexico and Canada, said the tariffs could hike vehicle prices and reduce sales.
Even if carmakers opted not to pass on higher costs “this could still lead to less investment, fewer jobs, and lower wages for our employees. The carry-on effect of less investment and a smaller workforce could delay breakthrough technologies,” GM said.