General Motors CEO Urges Trump to Consider Tariffs
General Motors Chair and CEO Mary Barra has cautioned President Trump against tariffs, emphasizing the potential impact on the manufacturing sector and the economy.
Despite its earnings release assuming a stable policy environment, GM acknowledges the potential ramifications of tariffs. Barra expressed her belief that Trump understands the implications and remains committed to fostering a strong manufacturing base.
The auto industry heavily relies on imports from Mexico and Canada, particularly for GM's profitable pickup trucks and EVs. Ford also manufactures a significant portion of its products in those countries.
Analysts highlight the limited capacity in the US to absorb production shifts if tariffs are imposed. Additionally, they estimate a $3,000 increase in the average cost of a car under 25% tariffs on Mexico and Canada, potentially driving buyers towards used cars.
Investors remain cautious, with GM and Ford stocks down since news of Trump's tariff stance. In contrast, Tesla's stock has gained as CEO Elon Musk has collaborated with the government on cost-cutting efforts.