Trump and GM CEO Discuss $60 Billion Investment Amid Tariff War

Key Participants

Trump and GM CEO Mary Barra met to discuss General Motors' investment plans amidst ongoing tariff wars.
Trump and Commerce Secretary Lutnick emphasized the need for the auto industry to increase assembly and production in the U.S.

Trump exempted automakers from the 25% tariffs on Canada and Mexico for one month, conditional on compliance with existing free trade rules.
Discussion included the challenges posed by Trump's tariffs on steel and aluminum, which have been increased to 25% as prior exemptions expired.

GM plans to invest $60 billion, although the timetable for this investment remains unclear.
Automakers, including GM, are seeking certainty in policies regarding tariffs and vehicle emissions to make informed investment decisions.

Ford's Farley expressed concerns that a 25% tariff would severely impact the U.S. auto industry.
The American Automotive Policy Council highlighted that domestic automakers primarily source steel and aluminum from North America but are concerned about increased costs without exemptions for Canada and Mexico.
Stellantis showed willingness to work with the government for further U.S. investment but emphasized the need for time and policies that avoid harming business and customers.

Trump has considered implementing reciprocal tariffs on vehicles imported from Europe, Japan, and South Korea starting April 2.

The discussions underscore the tension between encouraging domestic manufacturing investment and the economic pressures of tariff implementations.
GM and other automakers are cautiously navigating the policy landscape to optimize their North American operations.