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

GM announced plant closures in North America and thousands of layoffs, tariffs are also weighing down the car company.

A worker wears a t-shirt during a information session at Local 222 in Oshawa, Ontario, on November 26, 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

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. 

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