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Posts Tagged ‘Trump border tax’

GM Working on Border Tax Contingency Plan

Company investigating how to offset potential impact.

by on Apr.05, 2017

GM's Mark Reuss said the company was pushing ahead with plans to build the Buick Regal in Germany.

General Motors has begun to evaluate what could happen to its future plans if the Trump administration’s border tax takes is approved in Washington D.C. even as it prepares to import the 2018 Buick Regal from Germany.

Mark Reuss, GM executive vice president for product development, confirmed that the next generation Regal, which is scheduled to appear in showrooms next fall as both a sedan and as a wagon, will be built at the Opel factory in Russelsheim, Germany.

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The production of the Regal in Russelsheim will go forward even though GM is selling both Opel and Vauxhall to the Paris-based PSA Group, Reuss said. The GM-PSA deal is expected to close before the end of the year but encompasses the production of Buick models, such as the Regal and the convertible Buick Cascada, which is built at an Opel plant in Poland. (more…)

Trump Continues to Threaten Foreign Automakers

President tells crowd that there will be "consequences."

by on Mar.20, 2017

President Donald Trump continues to threaten foreign automakers, including German companies, with a border tax.

President Donald Trump continues to make veiled threats against Germany’s automakers, which are among the most successful in the world, apparently as part of a key tactic in negotiating new and more advantageous trade agreements with European countries.

“Germany has done very well in its trade deals with the U.S., and I give them credit for it,” Trump told a White House press conference. “Virtually any country we do business with — it’s not exactly good for our workers.”

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“The U.S. has been treated unfairly and that’s going to stop,” he told reporters at the White House. During a meeting with representatives of both foreign and domestic car makers in Detroit last week Trump urged them to build more vehicles in the U.S. (more…)

MEMA Against Trump Border Tax Plan

Proposed tax likely to raise prices, cost jobs, group says.

by on Mar.02, 2017

President Trump's proposed tax on goods coming into the U.S., particularly cars and trucks, is losing support.

The Motor and Equipment Manufacturers Association, the chief lobbying organization that represents automotive suppliers, has come out in opposition to the Trump administration’s plans for a border tax.

While MEMA supports tax reform, a border adjustment tax, which is a component of the current U.S. House Republican tax reform proposal, could disrupt the integrated supply chain for many companies and cause a ripple effect throughout the U.S. economy.

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MEMA said the tax would increase costs for vehicle manufacturers, decrease available capital for new product development, increase consumer prices, reduce sales and potentially eliminate manufacturing jobs in America.  (more…)

Republicans Working to Kill Trump’s Proposed Import Tax

Many believe it will raise prices and eliminate jobs.

by on Feb.15, 2017

President Trump's proposed tax on goods coming into the U.S., particularly cars and trucks, may get squashed by Congressional Republicans.

Republican Senators are growing increasingly cool to the idea of imposing a “border tax” on goods, including cars and trucks, exported to the U.S. from other countries in the Americas, Europe and Asia.

According to The Hill, a Capitol Hill newsletter and website, House Speaker Paul Ryan has met with Republican senators to neutralize the growing opposition to a core element of a tax plan cobbled together by Republicans in the U.S. House of Representatives who hope to advance President Donald Trump’s agenda.

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A 20% across-the-board tax on imports, also known as border adjustment, has become part of Trump’s plans to push companies to do more manufacturing in the U.S. Trump has threatened various auto makers, including General Motors, Ford Motor Co. and Toyota, with the border tax because they now build vehicles in Mexico. (more…)