G.M. Says New Wave of Tariffs Could Force U.S. Job Cuts

G.M. Says New Wave of Tariffs Could Force U.S. Job Cuts

General Motors warned Friday that one other wave of tariffs being thought-about by the Trump administration might pressure the corporate to cut back its enterprise and value American jobs.

In comments submitted to the Commerce Department, the automaker stated that the tariffs, if accredited, might drive particular person automobile costs up 1000’s of , stifling demand. Such prices would have to be borne both by customers or the corporate.

Last month, President Trump ordered an investigation into whether or not imported vehicles and automotive parts might pose sufficient of a nationwide safety danger to warrant tariffs of as a lot as 25 %. If he goes forward, it could intensify a worldwide commerce warfare that has engulfed allies and adversaries. In current months, the administration has imposed tariffs on imported metal and aluminum, together with measures focused at China.

Carmakers, particularly, have been caught within the center of the commerce combat. They rely closely on metals to construct their vehicles, together with components from abroad. The president’s risk to drag out of the North American Free Trade Agreement might additionally damage the business provide chain.

Several different automakers and manufacturing organizations, together with the National Association of Manufacturers, BMW and Volvo, have additionally submitted feedback on the tariffs into account for overseas automakers and half suppliers.

“Increased import tariffs could lead to a smaller G.M., a reduced presence at home and abroad for this iconic American company, and risk less — not more — U.S. jobs,” General Motors wrote in its remark.

The tariffs would end in “broad-brush trade barriers that increase our global costs, remove a key means of competing with manufacturers in lower-wage countries, and promote a trade environment in which we could be retaliated against in other markets,” the corporate stated.

General Motors pointed to different potential penalties, together with “less investment, fewer jobs and lower wages” for its staff.

“The carry-on effect of less investment and a smaller work force could delay breakthrough technologies and threaten U.S. leadership in the next generation of automotive technology,” the corporate wrote.

A G.M. spokeswoman, Dayna Hart, stated that the corporate had no contingency plans calling for job cuts, however that it was “something that could happen.”

“We are still assessing the impact,” she added.

General Motors wrote in its remark that it has 47 manufacturing amenities, 25 service half amenities and 110,000 staff within the United States, the place it conducts most of its analysis and improvement, design, engineering and different work.

Follow Tiffany Hsu on Twitter: @tiffkhsu

Neal E. Boudette contributed reporting.

Source link