Amid cutbacks, tariffs are adding to GM’s financial woes

Mitchell Hartman Nov 27, 2018
HTML EMBED:
COPY
A worker wears a t-shirt during a information session at Local 222 in Oshawa, Ontario, on November 26, 2018. LARS HAGBERG/AFP/Getty Images

Amid cutbacks, tariffs are adding to GM’s financial woes

Mitchell Hartman Nov 27, 2018
A worker wears a t-shirt during a information session at Local 222 in Oshawa, Ontario, on November 26, 2018. LARS HAGBERG/AFP/Getty Images
HTML EMBED:
COPY

General Motors announced it would close five production plants in North America and lay off almost 15,000 management and union workers. The U.S. car company is profitable right now, but slowing car sales and increased tariffs are squeezing GM’s bottom line. Syracuse economist Mary Lovely says the Trump administration’s trade policies are weighing on the company. “Steel and aluminum tariffs have raised its costs by about $1 billion,” Lovely said. GM plans to streamline its model lineup, and the restructuring could help keep GM in the black. 

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.