Navarro states that GM's warning on US tariffs is "Smoke and mirrors"

BMW AG is the latest company to urge the United States not to impose tariffs on auto imports, joining General Motors Co. by urging Wilbur Ross, its Secretary of Commerce, even as a top advisor to President Donald Trump "It seems that the threat of imposing these sanctions aims to achieve certain goals," reports the newspaper Welt am Sonntag, citing a copy of BMW's letter to Ross

The Munich-based luxury White House business advisor, Peter Navarro, has already discussed Friday the harsh warning of GM to the Trump administration Friday, according to which its automaker, Spartanburg, South Carolina, announced Friday could reduce US operations and reduce jobs if tariffs are widely applied to imported vehicles and auto parts.

More from Bloomberg.com: Trump Dives In Depth on the High Court Finalists Before July 9th Pick [19659006] "Increasing Import Rates Could Lead to a Smaller GM , a reduced presence at home and risk less – not more – American jobs, "said Friday the country's largest automaker at the Commerce Department. 19659007] This blunt statement comes from GM – a company headed by a CEO, Mary Barra, whose normal edge is to avoid political fray and let trade groups address the president's policies – was surprising for the company. industry observers. And she pointed out how much she, and many industry leaders, believe the issues are as follows when the president plunges the United States into tit-to-tat commercial wrangling around the world. GM's public statement follows the same steps as Toyota Motor Corp.'s Harley-Davidson Inc. and Daimler AG

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what will be the impact on GM, its employees and its consumers, "said Michelle Krebs, an analyst at AutoTrader.com. "GM, the auto industry and the economy as a whole have a lot to do."

Navarro replied to GM on Saturday during an interview on CNN, claiming that the auto company was using "Mirrors" to deceive the public. . He said that the impact of the rates on the price of a GM car was equivalent to "a luxury floor mat."

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"Even GM cars built here, about half of the content is foreign," said Navarro, adding that US factories had become "assembly factories" assembling components manufactured elsewhere. In the case of BMW's massive operation in South Carolina, there would be about 1,900 vehicles a day, many of which are exported.

Navarro added that Trump, after imposing a tax break on companies like GM and Harley, "felt betrayed" when they then threatened to move production jobs outside of the United States in response the retaliatory measures of foreign countries to Trump's tariffs.

This echoed a Trump tweet on Wednesday at Harley-Davidson: "I did so much for you"

Trump has ordered an investigation into whether auto imports pose risks to national security last month under a section of the same commercial law of the 1960s imposing levies on steel and aluminum. Trump told reporters aboard Air Force One on Friday afternoon that he expected the Commerce Department to complete the investigation "in three or four weeks," he added.

Under the Commerce Act, Ross has until February to conclude the investigation.But Trump wants the investigation to be completed before the mid-term elections in November so that 39, he can use the tariffs to his political advantage.

The survey worries manufacturers, suppliers of parts and The car manufacturers' retailers – including GM and Ford Motor Co. – import a substantial portion of the vehicles that they sell to the United States from other countries. Coin levies would also have major implications for high-end models such as the Ford F-150 pickup truck and the Toyota Camry sedan, raising prices by thousands of dollars

Read more: Toyota Camry increases by 1,800 $

– at $ 39.40 – in New York, and has now recorded three consecutive weekly declines, the longest since March

The story continues

GM's message was a surprise because that the company has kept close contact with the Trump administration "James Albertine, an analyst at Consumer's Edge Research, told Bloomberg TV:" This shocked us a bit, "he said. , "Because we thought that they were working more in the direction of ensuring that the administration knows the seriousness of the impact of the tariffs. "

Barra had already tried to stay on good terms with Trump, and continued to participate in his Strategic and Political Forum, even after several other CEOs, such as Bob Iger of Walt Disney and Elon Musk of Tesla, resigned. to protest against Trump's withdrawal from the Paris climate deal last year.The forum was disbanded in August following Trump's lukewarm response to the attacks of white supremacists in Charlottesville, Virginia

Sales Crimped?

Now, Detroit-based automaker Chevrolet, Cadillac, Buick and GMC warns that additional rates – in addition to those recently hit on steel, aluminum and Chinese products – could hurt GM and eventually its customers.He said higher prices would reduce sales, especially for less affluent consumers, and reduce the number of workers needed.

If GM was trying To absorb the extra costs, she would have less money to invest in popular vehicles. "The threat of high tariffs on imports of automotive vehicles and components may compromise GM's competitiveness against foreign automakers by erecting large trade barriers that increase our overall costs, removing a key way to compete with manufacturers." in low-wage countries, and promote a business environment in which we could retaliate in other markets, "the company said.

Chevrolet Blazer

According to LMC Automotive, the best-selling model was imported from Mexico last year, while the Chevrolet Equinox crossover was the best-selling vehicle in Canada. 9659034] Just last week, GM announced plans to bring the Chevy Blazer SUV back later this year. The iconic American brand will be built in a factory in Mexico, a decision that has elicited furious comments from the United Auto Workers union. In its response, the UAW said that GM sells 80% of its vehicles manufactured in Mexico

"GM imports a lot of pickup trucks from Mexico, so it's a huge problem," Alan Baum, an analyst West Bloomfield car, Michigan, said. "And for parts, it's not just GM." Everyone imports a lot of electronics from Asia, they're valuable pieces. "

Date	Trade Fallout
June 19	Tyson Foods says it faces "day-to-day uncertainty" in the delivery of goods and services
June 20 [19659039] Daimler cuts profit forecasts on US-Chinese trade
June 25	Harley-Davidson shifts its production overseas, sees EU tariffs $ 100 million
June 26	Brown-Forman raises price
June 28	Volvo Cars owner Li Shufu says cars will cost more with escalating wars
June 28	Osram says trade tensions have weakened trade sales of automotive lighting parts
June 29	General Motors says that it could be forced to cut jobs in the United States if tariffs are applied to imported vehicles and auto parts

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