Posted on 06/29/2018 1:16:05 PM PDT by reaganaut1
General Motors warned Friday that another wave of tariffs being considered by the Trump administration could force the company to scale back its business and cost American jobs.
In comments submitted to the Commerce Department, the automaker said that the tariffs, if approved, could drive individual vehicle prices up thousands of dollars, stifling demand. Such costs would need to be borne either by consumers or the company.
Last month, President Trump ordered an investigation into whether imported cars and automotive components could pose enough of a national security risk to warrant tariffs of as much as 25 percent. If he goes ahead, it would intensify a global trade war that has engulfed allies and adversaries. In recent months, the administration has imposed tariffs on imported steel and aluminum, along with measures targeted at China.
Carmakers, in particular, have been caught in the middle of the trade fight. They rely heavily on metals to build their cars, including parts from overseas. The president’s threat to pull out of the North American Free Trade Agreement could also hurt the industry supply chain.
Several other automakers and manufacturing organizations, including the National Association of Manufacturers, BMW and Volvo, have also submitted comments on the tariffs under consideration for foreign automakers and part 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 comment.
The tariffs would result 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 company said.
(Excerpt) Read more at nytimes.com ...
Maybe it’s time for the share holders of GM stock to find a CEO and executive staff that knows how to actually do their jobs and not spend time running off at the mouth to support leftard propaganda.
IOW - GM cars depend on overseas equipment to make American cars.
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There you go. A realignment needs to happen at GM. They need to get busy. Long term, an export market is created for American cars.
Kind of ironic that GM would complain about tariffs. Hang tough. We will win on trade!
Wilbur Ross and Donald Trump are very smart cookies.
I remember GM in the early 70’s with their buy American campaign and they were buying steel from France.The good old rust bucket vega days
The domestic producer only has to leave their price as is, reaping greater profits from a higher volume of sales as the price of foriegn goods increases above their own.
If GM would make their cars here, of US steel, they wouldn’t have a complaint.
They need to adjust to the new national policy.
As far as impact to consumers...they’ll do just fine buying cars made here.
Oh, the cost impact of a car made from either tariffed, or US steel is about $100. Their chief complaint is that they cannot manufacture in Mexico at $2.25/hr and import into the US without penalty.
And you support them.
Pretty much all the electronics in American cars comes from overseas, heck, Canada assembles GM cars and ships them back to us; Ford transmissions come from Mexico - last about two years then fail.
“Yeah tariff are great for China just ask the workers who average annual pay is $4,500.”
You are disingenuously comparing apples and Studebakers.
China has a population 4x of the US and a GDP that is but 65% of the US.
However, you neglect, conveniently, to mention the ongoing transfer of Capital Stock from the US to China. Averaging over $400bil per year for the last 25 years.
$10 trillion dollars.
The largest transfer of Capital Stock in human history. And it’s because the Chinese were smart enough to copy 19th Century American mercantilism...the same mercantilism that built THIS country.
Take your tired arguments elsewhere.
>> The domestic producer only has to leave their price as is, reaping greater profits from a higher volume of sales as the price of foriegn goods increases above their own <<
Sorry, Dear Teacher, but if you were in my Economics 301 course, you’d get an F.
“Tariffs cost jobs overall and raise prices for consumers. “
then why does every country in the world impose tariffs, and why has the U.S. government imposed tariffs throughout its history since the very first day our republic went into effect?
Well, if your class is nothing but free trade shibboleths, then I wouldn’t bother taking it, as there is nothing to be learned.
"But, in general, the protective system of our day is conservative, while the free trade system is destructive.
It breaks up old nationalities and pushes the antagonism of the proletariat and the bourgeoisie to the extreme point.
In a word, the free trade system hastens the social revolution. It is in this revolutionary sense alone, gentlemen, that I vote in favor of free trade.
If GM made all their cars/parts in the USA, they wouldn’t be facing any tariffs.
“Tesla is the only automaker that assembled 100% of its U.S.-sold cars domestically last year. And only three other companies — Jeep, Cadillac and Dodge — broke 80%.”
source: http://time.com/4677817/american-cars-brands-manufacturing/
Trump needs to straighten out this crap.
“Tariffs cost jobs overall and raise prices for consumers.”
The economy is booming. (Almost) Anyone who loses a job because of tariffs can easily find another job. There are more job openings in this country than unemployed people. Thus no jobs are lost “overall” as the economy is reset over time via tariffs and companies relocating jobs back to the US.
As for the cost to consumers, the tariffs are voluntary. Don’t buy a foreign product (car) and you don’t have to pay the tariff (tax).
CNBC: “There are more jobs than people out of work, something the American economy has never experienced before” - June 5th, 2018.
https://www.cnbc.com/2018/06/05/there-are-more-jobs-than-people-out-of-work.html
I also guessed Obama.
Foxconn is building a factory in Wisconsin. They may be able to take on electronics parts.
Only because the USA was stupid enough to let them get away with them ...
Yup. Instead of paying $40K for a base pickup you will now pay $50K. LOL!
GM is ripping off consumers of large vehicles everyday. They could absorb such costs is they wanted and still make a large profit. If they choose to pass along the cost, then so be it.
The US didn’t become rich with one of the highest per capita incomes in the world on tariffs. Your argument is nonsense. China’s GDP is exactly the point. You want China’s income then Ape China’s policies. China’s mercantilism is a disaster for the average Chinese just as it will be here.
If you think you can tax yourself to prosperity the you are not just tired but wornout.
The automakers and the UAW were crying for tariffs back in the 1980s and 1990s...remember Dick Gephardt? But, those were Democrats calling for tariffs back then so it was okay. Now that it’s a Republican in charge and automakers outsourced most of the US jobs they are against it.
China’s mercantilism is a disaster for the average Chinese just as it will be here.
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What was the average per capital Chinese income BEFORE China embarked on it mercantilism and what is the average per capital income now. What percentage increase?
For the same time period what was the beginning average American per capital income and what is it now? And the percentage increase during that time?
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