GM: Trump tariffs driving up costs

June 12, 2018 by Joseph Szczesny
General Motors CEO Mary Barra said it is too eary to tell the full extent of the impact of punitive tariffs on metals, but the company is seeing rising prices

US President Donald Trump's harsh tariffs on steel and aluminum are increasing costs for US auto giant General Motors but the company is examining the fallout, GM's chief executive said Tuesday.

"Clearly we want to maintain affordability in vehicles. We are seeing cost increases," CEO Mary Barra told reporters ahead of the company's annual shareholder meeting.

"We're working hard to understand the impact" of the , she said noting it was too early to tell for sure as there are "a lot of moving pieces in trade and the is a very complex business."

Barra also said negotiations to revamp the North American Free Trade Agreement, the premise for the continent's integrated supply chain, were incomplete, meaning the outlook was uncertain.

Trump last month allowed punishing border taxes of 25 percent on steel and 10 percent on aluminum to take effect for America's largest suppliers, prompting retaliation from Canada, Europe and Mexico.

The NAFTA talks have been hung up on the US demand to increase the US-made content in autos that receive duty-free treatment.

The Institute for Supply Management reported this month that the tariffs and threatened counter-measures already were jacking up metals prices, causing supply interruptions and order backlogs.

The White House is also considering tariffs on imported autos, which would throw a wrench in hundreds of billions of dollars in annual cross-border trade.

Barra said despite the uncertainty, the company so far had not had to shift course for the longer-term.

"We haven't been in a position where we have had to change our plans," she said.

Explore further: US tariffs on car imports are a double-edged sword

Related Stories

US tariffs on car imports are a double-edged sword

June 11, 2018

US President Donald Trump's threat to tax imported cars in the name of national security risks weakening domestic manufacturers, but could accelerate the renegotiation of the North American Free Trade Agreement.

US tariffs threat a headache for foreign automakers

June 10, 2018

US President Donald Trump's renewed threat to impose tariffs on auto imports will hit foreign automakers that export a large number of vehicles to the US market, but many also manufacture cars domestically.

US, China near deal to save ZTE: report

May 22, 2018

The United States and China have a tentative deal to save embattled Chinese telecom company ZTE, days after the two nations announced a truce in their trade standoff, The Wall Street Journal reported Tuesday.

Detroit auto show begins amid talk of NAFTA, tax cuts

January 14, 2018

The Detroit Auto Show shifted into full gear Sunday with international trade and tax cuts dominating the conversation, even as an optimistic industry raced to meet Americans' seemingly insatiable appetite for trucks and SUVs.

Recommended for you

Permanent, wireless self-charging system using NIR band

October 8, 2018

As wearable devices are emerging, there are numerous studies on wireless charging systems. Here, a KAIST research team has developed a permanent, wireless self-charging platform for low-power wearable electronics by converting ...

Facebook launches AI video-calling device 'Portal'

October 8, 2018

Facebook on Monday launched a range of AI-powered video-calling devices, a strategic revolution for the social network giant which is aiming for a slice of the smart speaker market that is currently dominated by Amazon and ...

Artificial enzymes convert solar energy into hydrogen gas

October 4, 2018

In a new scientific article, researchers at Uppsala University describe how, using a completely new method, they have synthesised an artificial enzyme that functions in the metabolism of living cells. These enzymes can utilize ...

2 comments

Adjust slider to filter visible comments by rank

Display comments: newest first

Shakescene21
not rated yet Jun 12, 2018
GM doesn't like tariffs on steel and aluminum, but it would be hypocritical for GM to complain too much because it benefits mightily from the 25% US tariff on pick-up trucks.

TheGhostofOtto1923
not rated yet Jun 12, 2018
Parts used to be made here in the US but unfair trade agreements put those companies out of business.

Trump tariffs will cause them to be made back here again.

This is the purpose of those tariffs, something you will never hear on the foul news media.

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.