Trump downplays GM plant closings, repeats false claim about steel plants

Trump downplays GM plant closings, repeats false claim about steel plants

Trump downplays GM plant closings, repeats false claim about steel plants

The government invested about $50 billion to bail out GM as a result of the company's 2009 bankruptcy, and at one time held a 61 percent equity stake in the Detroit-based automaker.

Shares of GM rose 0.7 percent to $36.95. The earlier rally was linked to Chief Executive Officer Mary Barra's plan to bolster cash flow by canceling production at five plants in the US and Canada and jettisoning slow-selling sedans from the lineup.

"They underscored their concerns for the workers, for the communities and for the families that are affected by this decision", a senior Canadian official told reporters. Many of those cuts are coming from the Midwest, where he has promised a manufacturing rebirth.

"General Motors is very counter to what other auto, and other, companies are doing".

Trump's tweet comes as his administration is mulling whether to apply fresh tariffs on imported autos under national security grounds, as it did on steel and aluminum imports. We are now looking... "We've done this to help you and I think his disappointment is, it seems like that they kind of turned his back on him". "Don't move. Don't sell your house".

Mr Trump typically took to Twitter to announce further auto tariffs were "being studied now" after the vehicle manufacturing giant announced closures in a bid to boost production in the US. You better get back in there soon. Questions remain, though, about whether Trump has the authority to act against the automaker without congressional approval. The CNN report said "GM is unaware of any significant federal subsidies the company is receiving beyond a $7,500 plug-in tax credit, which goes to the consumer, not the company".

Tesla Inc. has already reached the cap and GM is expected to be next.

US Could Tariff iPhones and Laptops Imported from China
Trump said that the next round of Chinese tariffs will be on consumer electronics coming in from the country. Brent crude futures rose US$1.68 to US$60.48 a barrel, while U.S. crude gained US$1.16 to US$51.58 a barrel.

White House press secretary Sarah Huckabee Sanders said that she did not have any additional information on the president's threat. The closures will cost over 14,000 people their jobs.

GM's announcement left manufacturing cities reeling. Trump has also threatened to take action against Amazon.com Inc, saying repeatedly in April, without providing evidence, that the online retailer was not paying the U.S. Postal Service a fair rate and saying that he would look at policies to address what he said were Amazon's unfair business advantages.

GM announced it would cut six gas-powered auto models as part of a plan to close factories and cut costs so it can spend more on electric and autonomous vehicle development. The factory will also make products geared to auto manufacturers and appliance makers.

The company announced that it will be closing up to four plants in the US and laying off as many as 15,000 employees. The union has vowed to fight the closures legally and in collective bargaining.

While his latest comments mark an escalation in frustration over GM's restructuring plan, the administration has always been considering imposing new tariffs on vehicle imports.

The president, who has made trade wars a signature of his "America first" administration, was angered by GM's decision to cut thousands of jobs in a series of plant closures, including in OH and MI. Those SUVs are the only models built in that plant. "If we did that with cars coming in, many more cars would be built here". If the United States went ahead with auto duties and its trading partners responded in kind it would take as much as three quarters of a percentage point off the global growth forecast that International Monetary Fund economists now expect to be 3.7 percent next year.

Trump has made boosting auto jobs a key priority during his nearly two years in office and has often attacked automakers on Twitter for not doing enough to boost USA employment.

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