This morning General Motors announced plans to cut nearly 15,000 jobs which could result in the closure of five plants. Four of the plants are in the U.S. - Detroit, Baltimore, Warren, Michigan and Lordstown, Ohio. The fifth plant in Oshawa, Ontario is expected to close immediately resulting in the loss of 2,500 jobs - essentially the backbone of the Canadian auto industry amidst fears of the imposition of tariffs on imported cars by the Trump Administration set to take effect next year. The imposition of tariffs on steel will also be a key factor in the closure of U.S. based plants.
So much for President Trump's promise to revive the manufacturing sector. Indeed, the GM announcement could be the canary in the coal mine. In which case, we can expect more companies to announce massive layoffs in 2019. All of which means we are soon headed for recession. It's not like Charles Koch didn't warn us. For this, Trump will only have himself to blame. The question is whether voters will see fit to blame him.
No comments:
Post a Comment