Very disappointed with General Motors and their CEO, Mary Barra, for closing plants in Ohio, Michigan and Maryland.
Donald Trump tweeted a warning shot across GM's front bumper Tuesday, threatening to pull all USA subsidies for America's largest automaker if its plans to slash jobs and production at North American plants prove to be a precursor to building interconnected electric cars in China. The company, along with Tesla (TSLA), has lobbied US lawmakers to lift the cap. Sen. "Nothing being closed in Mexico & China".
Trump went on threaten to cut all GM subsidies - including those for electric vehicles. "I am here to protect America's Workers!" he declared.
They also cast a pall over this week's signing of the U.S. -Mexico-Canada Agreement, the hard-won successor to NAFTA that Larry Kudlow, the director of the National Economic Council, acknowledged Tuesday was created to foster the growth of the auto sector.
Mr Kudlow, who met with Ms Barra on Monday, said Mr Trump felt betrayed by GM, which the Government had been trying to help.
He also stressed, however, that while the layoffs were "brutal" and "very disappointing", he did not think that they would "affect the overall economy". "Can't say anything final about that, but we're looking into it".
The White House rebuke appears to fly in the face of long-held Republican opposition to picking winners and losers in the marketplace.
"We appreciate the actions this administration has taken on behalf of the industry to improve the overall competitiveness of USA manufacturing".More news: Nissan drives out chairman after arrest
White House press secretary Sarah Huckabee Sanders did not elaborate as to what cuts could be enacted.
Buyers of electric vehicles made by GM and other automakers get federal tax credits of up to $US7,500, helping to reduce the price as an incentive to get more of the zero-emissions vehicles on the road. The company plans to lay off thousands of salaried workers in January.
GM on Monday announced it would cut six gas-powered auto models as part of a plan to close factories and cut costs so it can spend more on electric and autonomous vehicle development.
The reductions could amount to as much as 8 per cent of GM's global workforce of 180,000 employees.
The restructuring reflects changing North American auto markets as manufacturers continue to shift away from cars towards SUVs and trucks.
And Trump himself is crystallizing that disappointment, threatening to pull federal help for the automaker if it follows through on plans to build new interconnected, electric-powered vehicles outside the USA - particularly in China, the president's main trade rival.
Trump told GM on Monday it "better" find a new product for Lordstown Assembly plant in OH that will halt production in March. That figure was about 50 per cent cars just five years ago.
"GM is committed to maintaining a strong manufacturing presence in the US, as evidenced by our more than $22 billion investments in USA operations since 2009", the company said in a statement, referring to the year of its government-backed bankruptcy.