Tariffs might force GM into job cuts

2019 Mazda CX-5 Gets 190 HP Diesel and New Skyactiv Technology in Japan

2019 Mazda CX-5 Gets 190 HP Diesel and New Skyactiv Technology in Japan

Last month, Trump ordered an investigation into whether imported cars and automotive components could pose a national-security risk warranting tariffs of as much as 25 per cent.

Friday was the deadline for comments on the proposed tariffs. Toyota Motor North America said the tariffs "would have a negative impact on all manufacturers, increasing the cost of imported vehicles as well as domestically produced vehicles that rely on imported parts" like their Camry facility in Kentucky. It also said it would seek to move manufacturing of European-bound bikes outside of the US.

Trump later threatened to impose 20% tariffs on cars from Europe if the European Union didn't remove tariffs and trade barriers on U.S. goods.

"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. Mazda's USA unit said in a statement it filed the comments on behalf of 32,000 Americans who work for Mazda and the brand's dealerships.

The Japan Automobile Manufacturers Association, which emphasized that the USA has imported fewer vehicles from from the country in the wake of almost $50 billion in Japanese investment in United States plants and research centers.

"America does not go to war in a Ford Fiesta", the group said. "They send a Mercedes in, we can't send our cars in".

By law, the US Department of Commerce has 270 days to offer recommendations to the US president after a Section 232 probe starts.

Under the trade statute, Ross has until February to conclude the inquiry.

"That standard is simply not met here, as imports of vehicles and parts from countries like Canada, which has been defined by law as part of the US defense industrial base and which has been closely integrated with USA automotive production since the U.S".

GM's message came as a surprise because the company has kept close contact with the Trump administration, James Albertine, analyst with Consumer's Edge Research told Bloomberg TV. Some analysts suggested the vehicle tariffs are meant to pressure Mexico into renegotiating the NAFTA trade pact.

Barra had earlier tried to stay on good terms with Trump. She continued to serve on his Strategic and Policy Forum even after many other CEOs, such as Walt Disney's Bob Iger and Tesla's Elon Musk, quit to protest Mr Trump's withdrawal from the Paris climate agreement a year ago. The forum was disbanded in August following Trump's tepid response to attacks by white supremacists in Charlottesville, Virginia.

"New tariffs on autos and parts, especially on top of the already-damaging steel and aluminum tariffs, will drastically raise production costs for our auto companies, who will have to pass those costs on to consumers", he continued.

General Motors warned on Friday that expansive U.S. tariffs on imported vehicles being considered by the Trump administration could lead to a "a smaller GM" with fewer jobs while isolating usa businesses from the global market.

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".

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.