General Motors on Thursday announced it will dramatically increase vehicle production in Indiana following President Donald Trump’s tariffs.
The decision was made one day following Trump’s imposition of 25 percent tariffs on all imported cars and auto parts with the aim of revitalizing the industry.
The president revealed the tariffs last month, promising it would go into effect on April 2 that was deemed ‘Liberation Day.’
Seizing the opportunity, GM announced its plans to employ a few hundred temporary workers for the assembly line at the Fort Wayne plant.
The facility makes the Chevrolet Silverado and GMC Sierra trucks, which the American carmaker also manufactures at plants in Mexico and Canada.
GM’s announcement on Thursday stated that the hiring of temporary workers for the assembly plant is a part of the ‘operational adjustments’ necessary to bolster current manufacturing and business requirements.
While hundreds of more jobs will be available in Indiana, experts warned it would come at teh cost of the consumer who could be forced to by thousands of dollars more.
According to the Anderson Economic Group, that is due to carmakers, including GM, importing parts from foreign nations.
This is a developing story… More updates to come
GM made the announced just one day after Trump’s tariff frenzy, known as ‘Liberation Day’
However, Trump’s tariff announcement initially hurt GM as the carmaker has extensive operations in Mexico and Canada.
On March 27, the carmaker’s shares fell by more than seven percent as investors feared Trump’s move would make it vulnerable.
The stock is down by 1.76 percent just after 3pm ET on Thursday.
The company’s plants in Oshawa, Canada, and Silao, Mexico, where the trucks are also made, are currently running regular production, the company source said.
GM said that to implement the changes at Fort Wayne, the plant will be taken down from April 22 to 25, following the Easter holiday.
The 25 percent tariffs are for all vehicles not assembled in the US.
The White House said American bought approximately 16 million cars, SUVs, and light trucks in 2024, and 50 percent of these vehicles were imports.
‘Studies have repeatedly shown that tariffs can be an effective tool for reducing or eliminating threats to impair US national security and achieving economic and strategic objectives,’ the March 26 press release sates.
General Motors said it will dramatically increase vehicle production in Indiana following President Donald Trump’s tariffs
‘A 2024 study on the effects of President Trump’s tariffs in his first term found that they ‘strengthened the U.S. economy’ and ‘led to significant reshoring’ in industries like manufacturing and steel production.’
The research, conducted by global management consulting firm McKinsey & Company, noted that global tariffs on steel resulted in over 4,000 new American jobs.
Tariffs on steel and Chinese imports were reported to have ‘reduced imports of affected steel products by 24 percent’ and ‘increased U.S. production of steel products by 1.9 percent,’ according to the report.
However, research from the Federal Reserve Bank of New York determined that Trump’s first-term tariffs on China negatively impacted the US economy.
The team found the US stock market fell 11.5 percent on days when tariffs were announced, resulting in a a $4.1 trillion loss in firm equity value.
That was what took place on Thursday after Trump’s tariffs took effect amid fears of a US and global recession.
