Donald Trump orders GM to make Chevrolet Cruze in the US, or pay border tax
At 6:00 PM on 3rd Jan 2017 – Donald Trump tweeted – General Motors is sending Mexican made model of Chevy Cruze to U.S. car dealers-tax free across border. Make in U.S.A. or pay big border tax!
Donald Trump has threatened to impose a hefty border tax on General Motors for making the Chevy Cruze in Mexico and importing the same into US. This tweet from Trump could be seen as an ultimatum to move production back to the US or face stringent taxes on foreign made products.
However, in retaliation, General Motors asserts that all Chevrolet Cruze sedans sold in the US, are produced from the company plant in Lordstown, Ohio while Chevy Cruze for global markets are made in the Mexico of which only a small amount make their way to the US. General Motors has confirmed that of the 1,90,000 Chevrolet Cruze produced from the company plant in Mexico, only 4,500 are sold in the United States which works out to just 2.4%.
Donald Trump is particularly focused on the North American Free Trade Agreement – NAFTA, which he states has incentivized American companies to ship jobs overseas. He has also proposed a 35% tariff on goods produced in Mexico that then enter the United States and is a part of his border opposition to trade policies which he states is affecting American workers.
Besides targeting General Motors, Trump has also attacked Ford, preventing them from opening a new plant in Mexico and threatening to impose taxes on cars brought into the US while his tweets also target US retailers and defence contractors that include Amazon.com, Boeing and Macy’s.
General Motors is sending Mexican made model of Chevy Cruze to U.S. car dealers-tax free across border. Make in U.S.A.or pay big border tax!
— Donald J. Trump (@realDonaldTrump) January 3, 2017