Donald Trump Threatens GM with Border Taxes for Importing Chevy Cruzes From Mexico
On Tuesday, Jan. 3, 2016, President-Elect Donald Trump continued his efforts to bring jobs back to the United States by threatening to impose a tax on General Motors for importing vehicles that are made in Mexico.
General Motors imports a small percentage of their Chevrolet Cruze Compact cars from Mexico, while a majority of these vehicles are manufactured in a factory complex that is located in Lordstown, Ohio, which is east of Cleveland. Patrick Morrissey, General Motors Spokesman, stated that the company only imports hatchback versions of the Cruze from a factory in Ramos Arizpe, Mexico. It was reported by the Washington Post that only 50,000 versions of the Cruze were made in Mexico, but over 300,000 were manufactured in the United States. According to Morrissey, the hatchback version of the Cruze sold close to 4.500 models in the United States in 2016.
“General Motors is sending Mexican made models of Chevy Cruze to U.S.car dealers tax-free across border. Make in U.S.A. Or pay big border tax,” tweeted the President-Elect.
During his campaign, Donald Trump vowed to bring jobs that were taken from the U.S. and placed in other countries so that companies, to whom these jobs belong, can avoid paying taxes. Shortly after his election victory, Trump managed to work a deal to save jobs at a furnace factory in Indiana, but inflated the number of preserved jobs in the process. Later, he took credit for a big Japanese investment in the U.S. economy that was in the offing well before his election win.
Although the thought of making the hatchback versions of the Chevy Cruze in the United States sounds as if it would benefit U.S. employees, it can be debated that due to the low numbers of the hatchback versions being sold in the U.S. It would be more beneficial for the company to stop production of the vehicle altogether, or sell the hatchbacks in Mexico.
Many companies such as Apple are trying to figure out how much it would cost to move manufacturing from China to the United States, as well as many other companies. It can be assumed that these companies are preparing to make the adjustment to move plans to the United States just in case the soon-to-be president was serious about his campaign promises to bring jobs back to the country. The way things are going, most would assume President-Elect Trump plans to stay true on his promise.
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