GM warns tariffs would lead to less US jobs, investments
On Friday, General Motors warned that U.S. tariffs on imported vehicles could lead to “a smaller GM” with fewer jobs at home, jeopardizing its ability to invest in technologies such as autonomous and electric vehicles, while isolating U.S. businesses from the global market.
Last May, the Trump administration launched an investigation into whether imported vehicles posed a national security threat. If so, the President would be able to impose a 20% tariff on said cars.
The largest U.S. automaker said in comments filed with the U.S. Commerce Department that overly broad tariffs could “lead to a smaller GM, a reduced presence at home and abroad for this iconic American company, and risk less — not more — U.S. jobs.”
GM said the tariffs could hike vehicle prices and reduce sales. Even if automakers opted not to pass on higher costs “this could still lead to less investment, fewer jobs, and lower wages for our employees. The carry-on effect of less investment and a smaller workforce could delay breakthrough technologies,” the Detroit automaker added.