Auto tariffs will hurt U.S. economy, GM warns

Auto tariffs will hurt U.S. economy, GM warns

Business groups sent in comments this week to the Commerce Department, which is investigating whether Section 232 tariffs should apply to imports of automobiles and auto parts in the interest of national security.

"Overly broad" tariffs could "lead to a smaller GM, a reduced presence at home and overseas for this iconic American company, and risk less - not more- - US jobs", the automaker said in written comments to the US Commerce Department. GM said it employs about 110,000 workers in the USA and has invested more than $22 billion across 47 manufacturing facilities since it emerged from its government-led bankruptcy in 2009.

On Monday, Harley-Davidson announced it would move production of its Europe-bound vehicles offshore after the European Union imposed a 31% tariff on its motorbikes. Trump had already used the archaic Cold War Act to justify his tariffs on aluminum and steel earlier.

Trump argued that his administration was imposing the tariffs in the interest of US national security, citing rarely used Section 232 laws.

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.

"The penalties we could incur from tariffs and increased costs will be detrimental to the future industrial strength and readiness of manufacturing operations in the United States, and could lead to negative consequences for our company and USA economic security".

"It is now also increasingly clear that the way the steel and aluminium tariffs have been used will result in retaliatory tariffs from our largest trading partners and closest allies, and that retaliation will have serious negative economic impacts on the United States", they wrote in a letter to USA senators. Some analysts suggested the auto tariffs are meant to pressure Mexico into renegotiating the NAFTA trade pact.

"We are an exemplar of the manufacturing might of America", the company said.

Gareth Southgate says England have 'brilliant opportunity' to end knockout hoodoo
He said: "We have to focus on the game tomorrow". "We're not really fussed what side we got chosen on". He added that it was "important we react positively to the defeat" against Belgium.

Navarro added that Trump, having passed a tax cut that helps companies like GM and Harley, "felt betrayed" when they then threatened to move production jobs outside the USA in response to the retaliatory actions of foreign countries to Trump's tariffs. GM imports parts for cars that it makes in the United States. A similar process led to new tariffs on foreign steel and aluminium this spring.

Automaker Toyota said in a statement on Wednesday that a 25 percent tariff on automobiles would increase the cost of every vehicle sold in the United States.

"We believe the only plausible outcome of this investigation is to reject the notion that automotive imports threaten national security", said a statement from Toyota.

GM's Chevrolet Silverado pickup was the top-selling model imported from Mexico previous year, while the Chevrolet Equinox crossover was the leading vehicle sourced from Canada, according to LMC Automotive.

Both GM and Toyota warned that US consumers would bear the brunt of increased costs. "Based on historical experience, if cost is passed on to the consumer via higher vehicle prices, demand for new vehicles could be impacted".

The warning, made in a filing Friday with the Commerce Department, comes as America's manufacturers raise serious concerns about the president's trade policies, which they say could jeopardize their businesses at home.

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.

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