President Trump's tariff will have significant costs to the economy. One such company that is going to suffer is GM. With President Trump's tariff the rising price of steel and aluminum will cause the price of cars to go up $200 a car. This will most likely result in a decrease in demand for GM cars. In addition, this will hurt GM's bottom line by raising it's own costs by $300 million. This results in profit margins shrinking resulting a fall in the company's stock which is down over 10 percent in the last month.
http://www.businessinsider.com/trump-tariffs-general-motors-stock-price-to-have-a-two-fold-effect-2018-3
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This is an important reflection. These tariffs not only will hurt GM, but really any American multinational company that engages in commerce within China. On Saturday, as noted in the Wall Street Journal, it was mentioned that John Deere could also be hit hard indirectly through these steel and aluminum tariffs.
On top of the production cost going up. Car manufacturers are also going to have a harder time when going to the international markets, especially China because it is going to be harder to export their cars because of the higher production cost and because other countries might put tariffs on their products. This is something that will affect not only this but many other industries because when trying to export to other countries like China, they are probably going to put tariffs and make it harder for them to export. Trump's solution might be keeping jobs in the steel and aluminum industries, but it is probably going to cause some people to lose their jobs and might cause the economy to get harm, as well as international trade relationships with many countries being China the first on the list.
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