General Motors came out swinging Friday against President Trump's proposed tariffs on foreign automobiles, saying they risked weakening the company's global competitiveness and would lead to job cuts at home and overseas.
It's all part of Ottawa's plan to strike back at the U.S.in response to hefty tariffs on steel and aluminum, 25 per cent and 10 per cent respectively, imposed last month by Trump.
Carmakers get parts from all over the world and ship their product all over the world, meaning they are very susceptible to price fluctuations that put kinks in their supply chains, the Times points out.
"The penalties we could incur from tariffs and increased costs will be detrimental to the future industrial strength and readiness of manufacturing operations in the United States, and could lead to negative consequences for our company and USA economic security", GM said in the Friday filing.
"It is now also increasingly clear that the way the steel and aluminium tariffs have been used will result in retaliatory tariffs from our largest trading partners and closest allies, and that retaliation will have serious negative economic impacts on the United States", they wrote in a letter to USA senators.
He's already threatened to escalate the trade war by imposing a ruinous tariff on the Canadian auto industry that could cost thousands of jobs.
The rationale behind the new tariff proposal is the belief that imported cars and components may pose a security risk to the US. Another analysis estimated losses as high as 195,000 over three years if 25 percent tariffs are applied broadly.
In its 15-page submission to the Department of Commerce, Toyota echoed GM's sentiments, adding that tariffs "would have a negative impact on all manufacturers, increasing the cost of imported vehicles as well as domestically produced vehicles that rely on imported parts".
Canada's tariffs target U.S. steel and aluminium products.
America's largest carmaker has added its voice to the chorus of companies and countries criticising proposed United States tariffs on foreign cars and auto parts. "We want to explain how tariffs on auto imports may jeopardize them both".
All of the vehicles Mazda now sells in the United States are imported from overseas.
The Canadian tariffs are created to hit products like steel and bourbon from states like OH and Kentucky that heavily favored Trump in the presidential election.
The penalties will add 25 per cent to the cost of United States steel, and 10 per cent to aluminium and consumer goods. GM expressed its concerns in comments that it submitted to the Commerce Department on Friday.
"As the top USA exporter of vehicles, we believe lower tariffs in every market will support growth and jobs", Ford said in a statement to The Hill.
In Washington, the National Cattlemen's Beef Association said the tariffs would hit $170 million worth of USA beef products. Similarly, a third of Honda vehicles delivered in the US throughout 2017 were built overseas.
The U.S. tariffs, he insisted, are inextricably intertwined with the NAFTA negotiations.
Numerous products were chosen because they are produced in states represented by Republican politicians, the ones who keep propping up Trump.
Studies estimate that tariffs could increase the price of an imported $30,000 auto by about $6,400 and cause up to 195,000 USA workers to lose their jobs, JAMA said.
However, Treasury Secretary Steven Mnuchin called the report an "exaggeration", while White House legislative aide Marc Short said he was unfamiliar with any plan to pull out of the Geneva-based group.