General Motors recently announced its plan to cut more than 14,000 jobs. Earlier this year, the car manufacturer warned the Trump administration about the cost of his tariff war.
In a letter to the U.S. Department of Commerce, GM wrote: “Combined with the other trade actions currently being pursued by the U.S. Government … the threat of additional tariffs on automobile imports could be detrimental to our company.”
Trump lashed out at GM after its job reduction announcement and allegedly told its CEO that she “better” reopen plants in the U.S. soon.
According to Axios, the trade war has cost more than $700 million in higher steel prices for GM alone.
But GM isn’t the only car company feeling its wallet get lighter. Ford announced that by 2020, it will only sell the Mustang and the Focus Crossover in North America.
Tesla CEO Elon Musk blamed tariffs, and said his company was “within single-digit weeks” of going bankrupt earlier this year.
The tariffs could also affect Apple. Trump said he’s considering imposing a 10% tariff on iPhones and laptops made in China.
Even farmers are feeling the effects of tariffs. According to the Federal Reserve Bank of Minneapolis, the owners of 84 Midwest farms have filed for bankruptcy in the last year.
How did this start?
The U.S. imposed steel and aluminum import tariffs on numerous countries this year, including some allies — such as Canada, Mexico and the European Union.
In March, Trump announced tariffs on more than $50 billion worth of Chinese goods — and China retaliated.
And now it looks like there’s no end in sight for this trade war. Trump told the Wall Street Journal that he was likely to increase tariffs on Chinese goods from 10% to 25%.
Trump and Chinese President Xi Jinping are scheduled to meet in November at the G-20 summit and try to seek common ground.