By David Shepardson
WASHINGTON (Reuters) -President Donald Trump met General Motors CEO Mary Barra on Wednesday to discuss the automaker’s investment plans amid his tariff war, a White House official told Reuters.
In meetings with automakers, Trump and Commerce Secretary Howard Lutnick have said they want the industry to move more assembly and production of parts to the United States.
Trump last week agreed to exempt automakers for a month from his punishing 25% tariffs on Canada and Mexico so long as they complied with existing free trade rules.
The decision followed a telephone call with Barra, Ford CEO Jim Farley and Stellantis chair John Elkann.
On Thursday, Trump told reporters of Barra’s visit the previous day, adding, “They want to invest $60 billion.”
The period over which any new spending may occur is unclear.
Automakers have told the White House they need certainty about policies on tariffs and vehicle emissions before they can make significant changes in North American investment plans.
Asked about the meeting, a GM spokesperson said, “We share President Trump’s goals of a strong and competitive American manufacturing base and economy.”
This week Trump imposed bulked-up tariffs on steel and aluminum, affecting nearly $150 billion worth of products made from the metals, ranging from cars to bulldozer blades.
The metals tariffs were hiked to an effective increase of 25% as prior exemptions, exclusions and quotas expired.
Last month, Ford’s Farley warned that in the long term, a tariff of 25% across the Mexican and Canadian borders would “blow a hole” in the U.S.
industry never before seen.
The American Automotive Policy Council, which represents the Detroit Three automakers, said domestic automakers buy the vast majority of their steel and aluminum in the United States or North America.
However, it flagged concerns that specifically revoking exemptions for Canada and Mexico would add significant costs for their suppliers.
Last week, Stellantis told dealers it was prepared to work with Trump to support further investment in U.S.
manufacturing operations but needed time for changes that did not hurt the business and customers.
Trump has also threatened new reciprocal tariffs on April 2 that could drastically boost the costs of vehicles imported from Europe, Japan and South Korea.
(Reporting by David Shepardson; Editing by Diane Craft)
