Ohio Sen. Brown: Trump Supports American Cars Act

Content image- Phnom Penh Post

"The president is not one to take a lot of responsibility for his own issues, problems", said Brown.

He tweeted that the 25 percent tariff placed on imported pickup trucks and commercial vans from markets outside North America in the 1960s had long boosted US vehicle production.

The factory announcements likely represented GM's opening bid in contract talks with the union that start next year, said Kristen Dziczek, vice president of labor and industry with the Center for Automotive Research, an industry think tank in Ann Arbor, Michigan. Company officials also said that GM lost $1 billion because of tariffs Trump implemented on foreign goods.

Trump's suggestion that he may implement a new industry-wide tariff on auto imports isn't new: it's something he's been threatening for months. The president threatened to eliminate tax credits for GM's electric vehicles along with other tax breaks and subsidies. GM's actions would be the biggest restructuring for the carmaker since its bankruptcy a decade ago when they were bailed out by the government.

However, taking away that credit, which is phasing out for GM models anyway, may prove hard for Mr. Trump.

GM, and other U.S. automakers, have opposed the proposal for tariffs on imported cars and parts, saying such a move would hurt its U.S. employment. In August, U.S. Steel also said it was upgrading its Gary, Indiana plant. It's not clear precisely what, or when, action may be taken.

Sen. Sherrod Brown (D-OH), during Thursday's broadcast of "New Day" on CNN, addressed President Donald Trump's critical comments of the senator in regards to General Motors closing its plant in Lordstown, OH. GM produces the all-electric Chevrolet Bolt, and already was expecting to see the subsidies drop early next year. Workers also will be added at an SUV factory in Arlington, Texas. He spoke to the president in June after the automaker announced plans to cut its second shift at the Lordstown factory.

But those expansions aren't enough to accommodate all the roughly 3,300 US factory workers who could lose their jobs. Trump believes that foreign countries dump low-priced items in the USA and make it hard for U.S. manufacturers to compete, a trend that he says has destroyed millions of jobs. USA taxpayers lost more than $10 billion in the rescue of the company during the financial crisis a decade ago.

On November 26, General Motors announced it was cutting 15 percent of its workforce and closing plants in both countries to save $6 billion.

About half the workers laid off from those plants would have a chance to relocate to other GM operations, according to the company. The United States slapped an additional 25 percent tariff on Chinese-made vehicles earlier this year, prompting China to retaliate.

The decision drew sharp criticism from the USA and Canadian labor unions representing GM workers.

Trump's incendiary tweet came a short time after National Economic Council director Larry Kudlow said the White House's reaction was "a tremendous amount of disappointment maybe even spilling over into anger".

Related:

Comments


Other news