The President-elect threatened to impose a “big border tax” on the company for making its Chevy Cruze model in Mexico. Mr Trump wrote: “General Motors is sending Mexican-made model of Chevy Cruze to US car dealers tax free across border.
“Make in USA or pay big border tax!”
Mr. Trump’s comments marked his latest broadside aimed at an American company over jobs, imports and costs before he takes office on Jan. 20, signaling an uncommon degree of intervention for an incoming U.S. president into corporate affairs.
General Motors brands include the Chevrolet, Cadillac and Buick as well as Germany’s Opel and Britain’s Vauxhall. In 2015, General Motors announced the company would be investing $350 million to produce the Cruze at its Coahuila plant. The money being spent was part of a $5 billion investment in its Mexican plants, which began the year before, and would have created 5,600 jobs south of the border!
Mr. Trump is unafraid to insert himself into unfair trade policies which are killing blue collar American jobs and destroying the United States economy. President-elect has previously taken aim at aerospace manufacturers Lockheed and Boeing over contracts with the US government he has claimed were too expensive. He has been critical of car giant Ford in the past over its investments in Mexico. More broadly he has threatened to slap tariffs of 35% on imports of products made by companies that have moved production out of the US, and said he would tear up a major trade agreement with Mexico and Canada.
Last month he warned that firms shifting jobs away from America could be “making a very expensive mistake” and would face “retribution or consequence”.
General Motors is sending Mexican made model of Chevy Cruze to U.S. car dealers-tax free across border. Make in U.S.A.or pay big border tax!
— Donald J. Trump (@realDonaldTrump) January 3, 2017