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 ...
China’s went up and the US’s stagnated. Is there a point to that? Every post Communist economy had a growth spurt. Russia had a recovery as well as Eastern Europe. As we are starting to see with Trump wage growth was stymied by high taxes and regulation not because we could buy cheap textiles and plastic stuff.
>>>Just buy American steel and aluminum and you don’t have to pay that additional cost. Plus shipping costs will be less
American steel has gone from $600 a ton a year ago to over $900 today.
Just saw cost of Chinese steel has fallen 35% so the 25% tariffs shouldn’t matter
Kind of funny coming from a company who constantly advertises $9K and more off their trucks as a standard practice....if they stop overpricing their product to make it look like they are giving good deals, nobody would notice when the tariffs affect costs....
GM’s problems are mostly self inflicted. Design quality in, keep costs down, sell products the public wants....how difficult is that?
>> if your class is nothing but free trade shibboleths, then I wouldn’t bother taking it, as there is nothing to be learned <<
Economics 301 is usually about price behavior in competitive, partially competitive, and monopolistic markets. It does not get into international trade.
>> If you think you can tax yourself to prosperity then you are not just tired but wornout <<
Agreed, but I guess there is no cure for willful stupidity.
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