Donald Trump’s risky tariffs have cause quite a stir worldwide, especially here in America, where small and large businesses are paying the ultimate price for Trump’s decisions. Many companies have announced a need to move their plants overseas, including big names like Harley Davidson. Now another big one has hit media headlines. General Motors.
According to reports, General Motors was forced to lower their projected sales rate due to skyrocketing costs for steel and aluminum, thanks to Trump. Reuters reported that:
“Detroit automakers General Motors Co (GM.N), Ford Motor Co f.N and Fiat Chrysler Automobiles NV (FCA) (FCHA.MI)(FCAU.N) lowered their full-year profit forecasts on Wednesday due to escalating tariffs, hitting their stocks as investors bet that escalating trade disputes would hurt margins and sales.”
The publication continues:
“GM cited higher steel and aluminum costs for its 2018 profit forecast reduction as a result of tariffs imposed by U.S. President Donald Trump’s administration. GM shares closed down 4.6 percent.”
Chuck Stevens is the Chief Financial Officer for GM. He says that “despite some fairly significant headwinds that have built throughout the year,” the company was unable to attain the predicted profit, but that GM put in a “solid performance.”
According to Stevens, there is only one way for GM to survive this:
“GM would partially offset the commodity hit by negotiating price reductions with suppliers, raising prices on more popular models, and cost cutting, Stevens told analysts. Ford said tariffs could cost it up to $1.6 billion in 2018 in North America.”