GM Says New Wave of Tariffs Could Force U.S. Job Cuts

General Motors warned Friday that if President Donald Trump pushed forward with another wave of tariffs, the move could backfire, leading to “less investment, fewer jobs and lower wages” for its employees.

The automaker said tariffs on imports of cars and car parts — on top of an earlier spate of penalties — could drive prices up by thousands of dollars. The “hardest hit” vehicles, General Motors said in comments submitted to the Commerce Department, are often bought by consumers who can least afford it. Demand would suffer and production would slow, all of which “could lead to a smaller GM.”

Last month, Trump ordered an investigation into whether imported cars and automotive components could pose a national-security risk warranting tariffs of as much as 25 percent. If he goes ahead in the coming weeks, it would intensify a trade fight that has targeted allies and adversaries. In recent months, the administration has imposed tariffs on imported steel and aluminum, along with measures directed at China.

Carmakers, in particular, have been caught in the middle. They rely heavily on metals to build their cars, including materials from overseas. The president’s threat to pull out of the North American Free Trade Agreement could hurt the industry’s supply chain, which integrates operations in the United States, Canada and Mexico.

“Increased import tariffs could lead to a smaller GM, a reduced presence at home and abroad for this iconic American company, and risk less — not more — U.S. jobs,” General Motors wrote in its comment. “The carry-on effect of less investment and a smaller workforce could delay breakthrough technologies and threaten U.S. leadership in the next generation of automotive technology.”

Several other automakers and manufacturing organizations, including the National Association of Manufacturers, BMW and Volvo, have also submitted comments on the tariffs under consideration for foreign automakers and part suppliers. They echoed the concerns of General Motors.

A GM spokeswoman, Dayna Hart, said that the company had no contingency plans calling for job cuts, but that such a move was “something that could happen.”

“We are still assessing the impact,” she added.

Trump has promoted the tariffs as a way to protect U.S. businesses and workers from unfair trade practices of overseas competitors. But U.S. companies have been increasingly vocal about the potential damage from his policies.

This week, Harley-Davidson said it would move some of its production outside of the United States to avoid retaliatory tariffs by the European Union. The company said it was the only “sustainable option” to “maintain a viable business in Europe.”

The decision invoked the ire of the president, who quickly threatened punitive taxes. He accused the Wisconsin-based company, which he had previously cited as a poster child of American manufacturing, of having “surrendered.”

In its comments on the prospective tariffs, General Motors played heavily on its position as one of the country’s largest employers. The company said it has 47 manufacturing locations, 25 service-part facilities and 110,000 employees in the United States, where it conducts most of its research and development, design, engineering and other work.

General Motors suggested that additional tariffs would put U.S. companies at a disadvantage in the midst of a “fast-paced transportation revolution led by cutting-edge technologies.” Its investments in jobs and operations at home, the carmaker said, are critical to this effort.

“The economic fortitude of companies like ours directly supports the economic strength of the nation, which, in turn, contributes to the security posture of the United States,” the company said.