GM warns tariffs could reduce operations in the United States

General Motors (GM) issued a stern warning to the Donald Trump administration that it could reduce its operations in the United States (EU) and eliminate jobs if the tariffs are widely applied to imported vehicles and auto parts.

"The increase in import tariffs could lead to a decline in GM, a reduced presence in the country and abroad of this iconic American company, and risk to have fewer jobs in the United States, "said the country's largest automaker in comments submitted Friday to the Ministry of Commerce.

GM fell 1.9% to $ 39.74 its June 29th low in New York after the news. The action is heading toward its third weekly decline, the longest run since March.

President Donald Trump has ordered an investigation last month to find out if auto imports pose risks to national security under a section of the same commercial law 1960s used to set tariffs on steel and aluminum. The administration would consider imposing customs duties of up to 25 per cent.

"The threat of imposing heavy taxes on imports of motor vehicles and components threatens to jeopardize GM's competitiveness vis-à-vis foreign car manufacturers by erecting large barriers eliminates an essential means of competing with manufacturers in low-income countries and promoting a business environment in which retaliation could be adopted in other markets ", said the Detroit-based company.