Trump tests presidential limits by threat to General Motors

GM stock slips as Trump threatens to cut subsidies

GM stock slips as Trump threatens to cut subsidies

Mr Trump typically took to Twitter to announce further auto tariffs were "being studied now" after the vehicle manufacturing giant announced closures in a bid to boost production in the US. "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.

He said the small truck business in the US has been a favorite for many years due to a 25-percent tariff on foreign trucks.

BMW builds more cars in its U.S. factory than it sells in the United States.

Buyers of electric vehicles made by GM and other automakers get federal tax credits of up to $7,500, helping to reduce the price as an incentive to get more of the zero-emissions vehicles on the road.

BMW offered its own response to the president's tweet, confirming only that they "are considering building an engine plant in the U.S".

The solemn prayer vigil took place outside the General Motors plant in Lordstown on Thursday.

This tariff is known as the "chicken tax," because it was imposed in response to a fight between U.S. and European poultry producers over the price of chickens.

BMW hasn't announced a new US plant, but Chairman Harald Kruger did tell reporters at the Los Angeles Auto Show this week that the company is exploring whether to build an engine plant in the U.S.to support its North American operations, according to reports.

Trump's policy goals may have helped contribute to GM's decision.

Germany's BMW has a plant in SC with 10,000 employees.

In its announcement, GM said it would effectively close five assembly and propulsion plants in the United States and Canada in 2019, a reorganization plan meant to make the company "highly agile, resilient and profitable".

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

GM did not blame the threat of tariffs for this week's plant closing announcement. At a rally near GM's Lordstown plant last summer, Trump told people not to sell their homes because the jobs are "all coming back". Big Steel is opening and renovating plants all over the country.

"We're dealing with a corporation that doesn't have any respect for Canadian and American workers, and I think we should treat them in the same vein", said Jerry Dias, national president of Unifor, which represents GM workers in Canada.

The president also threatened to revoke government subsidies for the company. Customers want trucks and SUVs rather than sedans, so the plants that make sedans are being axed.

If Trump tries to move forward with auto tariffs over the warnings of his advisers, however, he may face an out-and-out revolt from congressional Republicans, some of whom have gone along with his trade wars so far only with much grumbling. "They say the Chevrolet Cruze is not selling well".

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