GM Warns Trump’s Tariffs Will Force Job Cuts, Hurt Competitiveness

General Motors says the tariffs U.S. President Donald Trump threatens to impose on imported cars could result in significant job losses and hurt the iconic American company.

In a statement submitted to the Commerce Department, General Motors says tariffs will undermine its ability to compete against foreign automakers “by erecting 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.”

GM’s announcement echoed similar statements made the previous days by Toyota and Mazda and said that tariffs will increase the price of vehicles and that these higher prices may be passed on to consumers. The company says that “hardest hit” vehicles from additional tariffs are likely to be those purchased by customers “who can least afford to absorb a higher vehicle price point.”

In turn, GM says, this will reduce local sales and threaten jobs in the supply base and surrounding communities.

If General Motors were to absorb the cost of new tariffs itself, “this could still lead to less investment, fewer jobs, and lower wages for our employees.” As such, the United States could lose its competitive edge in next-generation automotive technologies which are set to alter the industry forever.

Last month, President Trump ordered an investigation into whether imported vehicles and their components pose a national security risk. He has called for tariffs as high as 25 per cent, which would be enforced alongside the levies recently placed on steel and aluminum.

Speaking to The New York Times, Auto Trader analyst Michelle Krebs said a trade war with other nations will hurt U.S. consumers.

“If there’s a full-blown trade war, it will be pretty tough for the auto industry and consumers”, Krebs noted. “Consumers are already facing headwinds in credit and average prices going up. If you add a tariff, my guess is a lot of people just won’t buy new cars.”