Trump Threatens to Cut GM Subsidies, Repeats "Magic Wand" Claim
Economic Magic Wand Claim September 10
Manufacturing Magic Wand Claim November 26
At a Mississippi campaign rally yesterday, Trump bragged that his administration had "found the magic wand" for manufacturing in the United States.
This was just a few hours after GM announced it's closing 8 plants, 4 in the US, and shedding close to 15,000 workers.
In response to the GM announcement, Trump told GM CEO Mary Barra she had "better" reopen plants in the US soon.
Trump Chastises GM November 27
Trump Threatens to Kill GM Subsidies November 27
Yesterday in reference to the Chevy Cruze Trump offered this threat. "Their car is not selling well. So they'll put something else -- I have no doubt that, in a not-too-distant future, they'll put something else. They better put something else in."
Today we found out, sort of.
Trump never finished the sentence.
Business Insider discusses Potentially Devastating Tariffs.
Chris Krueger, a policy analyst at Cowen Washington Research Group, told Business insider that GM's announcement on Monday could add more fuel to Trump's desire to impose a 25% tariff on all cars, trucks, and auto parts coming into the US.
Gary Cohn, Trump's former top economic adviser, has said the president asked him why all cars couldn't be made in America.
The move would be economically devastating, economists say. A study from the Peterson Institute of International Economics found that a 25% auto tariff would cause auto production in the US to fall by 1.5% over the first three years and result in a net loss of 195,000 jobs.
Krueger was confident that regardless the impetus for the move, there is only one outcome in the end. "Tariffs are coming," he said.
No Magic Just BS
We are about to find out how little "magic" there is in Trump's wand.
Mike "Mish" Shedlock