In comments submitted to the Commerce Department, automobile manufacturer General Motors warned of the potentially disastrous effects President Donald Trump’s newest, impending tariffs could have on the economy, the New York Times reports.
Although GM remains committed to the American market, where it operates 47 manufacturing facilities and 25 service part facilities, employing over 100,000 Americans, tariffs undermine the automaker’s ability to compete globally. Combined with other trade actions being pursued by the Trump administration, another wave of tariffs could be “detrimental” to General Motors, the company said.
GM’s comments are available in full on regulations.gov.
“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, cannot be ignored,” GM remarked.
“Alternatively, if prices are not increased and we opt to bear the burden of tariffs or plant moves, 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 and threaten U.S. leadership in the next generation of automotive technology.”
As the New York Times noted, GM is not alone in its pursuit of battling the incoming second wave of Trump tariffs. Others have joined forces with the Detroit-based company, including the National Association of Manufacturers, BMW, and Volvo. While GM is still “assessing” the potential impact of Trump’s tariffs, some have already shifted production overseas.
As the Inquisitr reported on June 25, in response to the EU’s retaliatory tariffs, Harley Davidson Motorcycles decided to take a hit of $30 million to $45 million for the rest of 2018, refusing to increase retail prices, but still moving production across the pond.
After learning about the news, Donald Trump promptly reacted via Twitter, accusing Harley Davidson of “surrendering,” and claiming that the move will be the “beginning of the end” for the famous Wisconsin-based motorcycle maker.
Donald Trump’s infatuation with tariffs seems to have created a rift within the Republican Party, promising further political consequences. As MarketWatch noted, the president’s decision to escalate the trade war with the European Union, Canada, China, and Mexico, has provoked a reaction from a few prominent GOP members.
Jeff Flake, the U.S. Senator from Arizona, promised to block judicial nominees, unless the Senate votes on legislation designed to limit the president’s ability to impose tariffs. Considering Supreme Court Justice Anthony Kennedy recently resigned, Flake could have enough maneuver space to turn his idea into reality, according to MarketWatch.
The same outlet noted that other GOP members, like Senator Bob Corker, Senator Ben Sasse, and House Speaker Paul Ryan, have also openly and publicly opposed Trump’s tariffs.