General Motors may have to slash its American workforce to compete in Europe as a result of Trump's tariffs, the New York Times reports.
President Trump is looking to add severe tariffs of as much as 25 percent on imported steel and aluminum, which would lead to retaliatory tariffs that could spark a global trade war.
Carmakers get parts from all over the world and ship their product all over the world, meaning they are very susceptible to price fluctuations that put kinks in their supply chains, the Times points out.
“Increased import tariffs could lead to a smaller G.M., a reduced presence at home and abroad for this iconic American company, and risk less — not more — U.S. jobs,” General Motors wrote in a statement given in response to Trump's plan.
GM currently has 110,000 employees in the United States.