Steel, aluminum tariffs have already driven up General Motors costs, says CEO
Tariffs on aluminum and steel have already driven up costs in General Motors, CEO Mary Barra acknowledged Tuesday during a press conference ahead of the company’s annual shareholders meeting, local media in Detroit reported.
Since trade negotiations are still incomplete, it is difficult to have the complete picture of the impact that tariffs will have on the General Motors or the automobile industry in general, hence the company still hasn’t delayed or modified any current plans, Barra told reporters.
“Clearly there are a lot of moving pieces in trade and the auto industry is a very complex business, we need to let the discussions proceed to a conclusion,” the official stated.
Besides placing a 25% tariff on imported aluminum and steel, which has had a direct impact on the automotive supply chain, the Trump administration also has floated the idea of a 25% tariff on complete vehicles that are exported to the U.S. from the European Union as well as China, Canada, and Mexico, where GM operates an engine plant and three assembly facilities that build sedans, crossovers, and the highly profitable Chevrolet Silverado, as well as its twin the GMC Sierra.
Barra said that, despite the uncertainty created by the changes in trade policies proposed by the Trump administration, “we haven’t been in a position where we have had to change our plans.” But she acknowledged that GM’s plans for the long term could change.