New threat from Trump on imports

Share

President Donald Trump is saying he's "very disappointed" in General Motors closing plants - and he says the White House is "looking at cutting all subsidies" for the auto giant.

"Instead of giving companies tax breaks to shut down American factories and lay off workers, why haven't you supported the American Cars American Jobs Act?"

"They got billions of dollars - GM did - most of that money went into the pockets of executives and stock buybacks and big investors and they should be investing that in this company and in this plant".

"General Motors is very counter to what other auto, and other, companies are doing", he tweeted.

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

Meanwhile, pressure is mounting on China to come to a deal with the United States to avoid a massive new round of tariffs that Trump says are aimed at correcting decades of unfair Chinese trade practices.

Earlier this week, GM announced GM plans to close up to five plants by the end of the year.

"The GM site in Lordstown, should it be sold by General Motors, is a ready-made facility in an excellent location outside of Youngstown on the Ohio Turnpike".

More news: Cavaliers trade Kyle Korver before matchup against the Thunder

"We appreciate the actions this administration has taken on behalf of industry to improve the overall competitiveness of USA manufacturing", GM said in a statement Tuesday.

Trump's harsh words rattled investors, who bid down GM shares by 2.6 per cent on Tuesday after sending them up on Monday in response to the automaker's cost-cutting.

GM, Tesla Inc. and Nissan Motor Co. formed a coalition earlier this month to lobby to have the purchase subsidy extended.

The stakes for Trump with mass GM layoffs are especially high given the U.S. president's vows to revive smaller cities and towns throughout the rust belt that have suffered job losses that Trump blames on bad trade agreements negotiated by his predecessor.

GM declined to comment on Schumer's remarks. Among those four is a vehicle factory in northeast OH, a state critical to victory in the 2020 presidential campaign. "Today, GM is continuing to take proactive steps to improve overall business performance, including the reorganization of its global product development staffs, the realignment of its manufacturing capacity and a reduction of salaried workforce".

The prospect of tariffs of 25 percent on imported autos and parts has sent shockwaves through the auto industry, with both U.S. and foreign-brand producers lobbying against it and warning that national security tariffs on European Union and Japanese vehicles could dramatically raise the price of many vehicles.

Senate Democratic Leader Charles Schumer on Tuesday criticized Trump for "overpromising" as a candidate about protecting against plant closures if he was elected.

GM officials claim that their decisions are because of the decrease in popularity of the sedan in favor of SUVs among consumers. Those tariffs are set to rise from 10% to 25% at the beginning of next year, putting yet another price hike on automakers' plates.

Share