GM WARNS: Trump's tariffs 'undermine our ability to compete'

The General Motors Canada office in Oshawa Ont

Automakers, manufacturers oppose Trump call for auto tariffs

In a filing with the Commerce Department, the auto giant said the trade actions pursued by President Donald Trump will add risks, including higher costs that could spiral into more expensive car prices and a subsequent decline in vehicle sales.

General Motors Co. delivered a harsh warning to the Trump administration, saying that a 25 percent tariff would likely lead them to reduce us operations and cut jobs.

The largest U.S. automaker said in comments filed on Friday with the department that overly broad tariffs could "lead to a smaller GM, a reduced presence at home and overseas for this iconic American company, and risk less - not more - usa jobs".

For example, the UAW said the auto industry's huge influx of investment in Mexico has siphoned U.S.jobs and "weakened our national economy", while the trade imbalance with Canada, a high-wage country like the USA, is modest.In a statement, Commerce Secretary Wilbur Ross said his department has fielded about 2,500 comments on the tariff investigation, with public hearings set for July 19 and 20.

GM, which makes some vehicles for the United States market in Mexico and Canada, said the tariffs could hike vehicle prices and reduce sales.

The U.S. automaker warned that an escalating trade war could backfire and lead to "less investment, fewer jobs and lower wages". GM said it employs about 110,000 workers in the USA and has invested more than $22 billion across 47 manufacturing facilities since it emerged from its government-led bankruptcy in 2009. "We want to explain how tariffs on auto imports may jeopardize them both".

Durant, Warriors agree to short-term deal
Thunder • Forward Jerami Grant has agreed to a three-year, $27 million deal with a player option the third year. The two-time NBA Finals Most Valuable Player will get maximum money but isn't committing to the team long term.

Mr Trump told reporters aboard Air Force One last Friday afternoon that he expected the Commerce Department to complete the investigation "in three or four weeks".

Now, the Detroit-based maker of Chevrolet, Cadillac, Buick and GMC vehicles is warning that additional tariffs - on top of those recently slapped on steel, aluminium and Chinese products - could hurt GM and ultimately its customers.

Speaking to reporters aboard Air Force One as he traveled from Washington to New Jersey, Trump also said the United States has been treated very badly by the WTO, but he is not considering withdrawing from it at this point. That same day, the largest nail manufacturer in the U.S. "The potential negative ramifications of such tariffs to the nation's auto industry, consumers, and overall USA economy are real", the letter said.

About 80 percent of what Ford sells in the U.S.is built in the United States.

The Department of Commerce is now accepting rebuttal comments for responses already submitted until July 6, and will hold public consultations in Washington in July. Detroit's "Big Three" and other manufacturers, including BMW and Mercedes-Benz, export vehicles from USA factories to overseas markets.

Latest News