Will Tariffs Proposed on Foreign Cars Impact Your Business?

By The Daily Caller

Will Tariffs on Foreign Cars Get You to Buy Domestic Next Time?

President Donald Trump revealed that he will study putting tariffs on imported cars in order to give U.S. companies an advantage in light of large job cuts announced by General Motors in a series of Wednesday tweets:

The reason that the small truck business in the U.S. is such a go to favorite is that, for many years, Tariffs of 25% have been put on small trucks coming into our country. It is called the “chicken tax.” If we did that with cars coming in, many more cars would be built here…..

— Donald J. Trump (@realDonaldTrump) November 28, 2018

…..and G.M. would not be closing their plants in Ohio, Michigan & Maryland. Get smart Congress. Also, the countries that send us cars have taken advantage of the U.S. for decades. The President has great power on this issue – Because of the G.M. event, it is being studied now!

— Donald J. Trump (@realDonaldTrump) November 28, 2018

Trump referenced a 25-percent tariff imposed on any imported light truck to the United States, known as the Chicken Tax, for why America has maintained a robust domestic market for the larger vehicle. Trump has been particularly incensed by GM’s announcement that it would close factories across the U.S. and cut 14,000 jobs.

The president tweeted Tuesday that he is considering a complete end to subsidies for the U.S. car company and referenced how GM took billions of taxpayer dollars during the bailout of 2008.

Very disappointed with General Motors and their CEO, Mary Barra, for closing plants in Ohio, Michigan and Maryland. Nothing being closed in Mexico & China. The U.S. saved General Motors, and this is the THANKS we get! We are now looking at cutting all @GM subsidies, including….

— Donald J. Trump (@realDonaldTrump) November 27, 2018

….for electric cars. General Motors made a big China bet years ago when they built plants there (and in Mexico) – don’t think that bet is going to pay off. I am here to protect America’s Workers!

— Donald J. Trump (@realDonaldTrump) November 27, 2018

General Motors CEO Mary Barra announced Monday that she would slash thousands of jobs across the United States and close several factories. The company noted that nearly 14,000 jobs and plants in Ohio, Michigan, Maryland and Canada would be affected.

“We are taking these actions now while the company and the economy are strong to stay in front of a fast-changing market,” Barra said in her announcement.

The president expressed his dissatisfaction with the decision to reporters Monday saying, “I spoke to her [Barra], and I stressed the fact that I am not happy with what she did.”

National Economic Council Director Larry Kudlow further explained to reporters Tuesday that the White House was not only disappointed in GM’s decision but that much of the feeling in the building verged on “anger.”

Kudlow noted that the White …read more

Read more here:: SmallBusinessTrends

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