GM CFO States That Company Must Reevaluate Plant Locations If US Tariffs Become Permanent

During a Barclays conference on Wednesday, General Motors CFO Paul Jacobson stated that if U.S. tariffs were made permanent, the company would have to consider relocating plants. However, he clarified that no decisions had been made yet.

GM, along with other automakers, is closely watching the impact of tariffs on vehicles and parts from Canada, Mexico, and other countries. GM executives have been proactive in moving inventory across borders before potential tariffs take effect and are exploring other options to minimize costs for the company.

President Donald Trump recently announced plans to implement a 25 percent tariff on automobiles starting in April. He also initially proposed 25 percent tariffs on goods from Mexico and Canada, but later postponed the decision for a month.

Speaking at the Barclays conference, Jacobson expressed concerns about the potential long-term effects of tariffs on the company’s operations, such as plant allocations and relocations. He emphasized the uncertainty surrounding these issues, given the ongoing market speculation about the impact of tariffs on profitability.