Trump floats new auto tariffs in response to GM layoffs

President TrumpDonald John TrumpProsecutors investigating Trump inaugural fund, pro-Trump super PAC for possible illegal foreign donations: NY Times George Conway: Why take Trump's word over prosecutors' if he 'lies about virtually everything' Federal judge says lawsuit over Trump travel ban waivers will proceed MORE on Wednesday hinted he may support new tariffs on auto imports as his latest response to General Motors' decision to shutter U.S. factories and lay off workers.

In a series of tweets, Trump argued that a longstanding 25 percent tariff on light trucks has boosted U.S. auto manufacturers and that the same approach could work for cars.

”If we did that with cars coming in, many more cars would be built here and G.M. would not be closing their plants in Ohio, Michigan & Maryland. Get smart Congress,” Trump wrote.

The president said major auto exporting countries “have taken advantage of the U.S. for decades" and warned “that the president has great power on this issue.”

”Because of the G.M. event, it is being studied now!” he wrote.

The comments follow a report in the German media that Trump is considering slapping a 25 percent tariff on car imports from all countries aside from Mexico and Canada. Trump previously decided to put off auto tariffs on Europe in exchange for the European Union agreeing to purchase more American soybeans.

General Motors' announcement this week angered Trump, who views the U.S. economy as a reflection of his presidency. The plant closures and layoffs, combined with a sputtering stock market and rising interests rates, appear to have sparked fears of an economic downturn and prompted Trump to lash out.

Trump blamed Federal Reserve Chairman Jerome Powell for the stock-market slide and the GM layoffs, citing his decision to raise interest rates. The president said he also spoke to GM CEO Mary Barra to relay his unhappiness with the decision and threatened to end GM's federal tax credit for electric vehicles.

GM has said slow demand for cars in the U.S. market, combined with tariffs on Chinese steel and aluminum, have hurt sales and forced the company to shutter plants in Lordstown, Ohio; Detroit-Hamtramck, Mich.; and White Marsh, Md.

The U.S. imposed a 25 percent tariff on imported light trucks in 1964 after France and West Germany imposed tariffs on U.S. chicken, hence the name ”chicken tax.”