According to Reuters, US President Donald Trump’s administration will be going back to the drawing board on his high-priced auto tariffs after General Motors restructured their company, shuttering several plants and cutting 15,000 jobs.
Key quotes
The U.S. Commerce Department has circulated draft recommendations to the White House on its investigation into whether to impose tariffs of up to 25 percent on imported cars and parts on national security grounds, Reuters reported earlier this month.
The prospect of tariffs of 25 percent on imported autos and parts has sent shockwaves through the auto industry, with both U.S. and foreign-brand producers lobbying against it and warning that national security tariffs on EU and Japanese vehicles could dramatically raise the price of many vehicles.
Trump said on Twitter that the 25 percent tariff placed on imported pickup trucks and commercial vans from markets outside North America in the 1960s had long boosted U.S. vehicle production.
GM did not directly comment on Trump’s tweets, but reiterated that it was committed to investing in the United States.
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