Trump Threatens Subsidy Cuts For GM After Layoff Announcement

Saagar Enjeti | White House Correspondent

President Donald Trump revealed Tuesday that his administration is considering rescinding government subsidies for General Motors after the company announced it would layoff thousands of workers.

General Motors CEO Mary Barra announced Monday that she would slash thousands of jobs across the U.S. and close several factories. The company noted that nearly 14,000 jobs and plants in Ohio, Michigan, Maryland and Canada would be affected.

“We are taking these actions now while the company and the economy are strong to stay in front of a fast-changing market,” Barra said in her announcement.

The GM logo is seen at the General Motors Warren Transmission Operations Plant in Warren, Michigan October 26, 2015. REUTERS/Rebecca Cook/File Photo

Trump noted that GM was bailed out by U.S. taxpayers in Dec. 2008 during the Great Recession and referenced the company’s extensive manufacturing network throughout the world, including China.

The president expressed his dissatisfaction with the decision to reporters Monday saying, “I spoke to her [Barra], and I stressed the fact that I am not happy with what she did.”

National Economic Council Director Larry Kudlow further explained to reporters Tuesday that the White House was not only disappointed in GM’s decision but that much of the feeling in the building verged on “anger.”

U.S. President Donald Trump speaks to reporters before he boards the Marine One helicopter to begin his travel to Mississippi from the White House in Washington, U.S. Nov. 26, 2018. REUTERS/Jonathan Ernst.

U.S. President Donald Trump speaks to reporters before he boards the Marine One helicopter to begin his travel to Mississippi from the White House in Washington, U.S. Nov. 26, 2018. REUTERS/Jonathan Ernst.

Kudlow noted that the White House felt especially spurned by GM because of the efforts the administration took in soliciting feedback from car companies during the renegotiation of the North American Free Trade Agreement. The new agreement, known as the U.S.-Mexico-Canada-Agreement (USMCA), was rolled out by President Donald Trump in early October.

Tags : donald trump general motors larry kudlow
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