Why Trump is talking about a 'chicken tax'

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Trump's policy goals may have helped contribute to GM's decision.

"The U.S. saved General Motors, and this is the THANKS we get!"

Numerous job cuts would affect the Midwest, the politically crucial region where the president promised a manufacturing rebirth.

Trump said the USA could use a measure similar to its 25% tariff on light trucks, known as the "chicken tax," to prevent factory closings similar to General Motors' recent announcement.

GM Chief Executive Mary Barra spoke to Trump over the weekend to discuss the cuts and was at the White House on Monday to meet with economic adviser Larry Kudlow. Xi has said he was "happy" after talking to Trump.

About 1 million electric vehicles have been sold in the US, or just more than 1 percent of the nation's fleet, E&E News recently reported. "I love OH. I told them, 'you're playing around with the wrong person, '" he added.

Rep. Tim Ryan and Rep. Marcy Kaptur are expected to urge GM to reverse course and ask President Donald Trump to act.

Here's another problem for Mr. Trump: Any change in the EV credit would have to originate with Congress, which authorizes spending.

Chris Krueger, a strategist at Cowen Washington Research Group, said GM's move made it more likely that Trump "doubles down with auto and auto parts tariffs".

He added that his administration was "looking at cutting all GM subsidies, including for electric cars".

White House press secretary Sarah Huckabee Sanders told reporters at a briefing, "I don't know that there's a specific timeline" for taking action against GM.

Trump has long promised to return manufacturing jobs to the United States and particularly the Midwest.

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Brown said he and Trump didn't talk about the president blaming the closure of the Lordstown plant on him.

"Get smart Congress. Also, the countries that send us cars have taken advantage of the USA for decades", Trump wrote.

Volvo recently announced a reduction to its hiring plans and scaling back on the auto company's new assembly plant near Charleston, South Carolina, as a result of the impending higher auto tariffs. The plant already employs 10,000 workers.

As of October, there were roughly 382,000 U.S.jobs in the manufacturing of primary metals such as steel, down from 622,000 jobs in 2000.

The company responded to Trump saying it remains "committed to maintaining a strong manufacturing presence in the USA, as evidenced by our more than $22 billion investments in U.S. operations since 2009".

Ford's CEO said metal tariffs cost the automaker $1 billion in profits, and BMW cut its profit forecast, citing the trade war with China as a primary reason.

Lighthizer said, "At the president's direction, I will examine all available tools to equalize the tariffs applied to automobile".

Brown has said he repeatedly tried to get GM to keep the plant open in recent months.

While his latest comments mark an escalation in frustration over GM's restructuring plan, the administration has always been considering imposing new tariffs on vehicle imports. But it later negotiated concessions from the union and reopened the plant to build the Chevrolet Sonic subcompact vehicle.

The US now provides subsidies to auto buyers of $2,500 to $7,500 for electric vehicles by all automakers depending on the model, and how many have been sold.

The reductions could amount to as much as 8 percent of GM's global workforce of 180,000 employees. The company was also saying goodbye to sedan models that have become far less popular than trucks and SUVs.

It was not the first time that Trump made threats against a USA company.

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