President-elect Donald Trump went on Twitter to issue a taxation threat to the car manufacturer General Motors. In his tweet, Trump outright stated that GM is sending Mexican made model of Chevy Cruze to U.S. car dealers “tax-free.” He then threatened a “border tax.”
General Motors is sending Mexican made model of Chevy Cruze to U.S. car dealers-tax free across border. Make in U.S.A.or pay big border tax!
— Donald J. Trump (@realDonaldTrump) January 3, 2017
In the end, who will this hurt, really?
If a “big border tax” is assessed to punish GM for building “tax-free across the border,” do not be naive in thinking the company itself will absorb that monetary blow. Inevitably, the extra cost of a “border tax” will be passed on to the consumer thereby increasing the price they will pay.
But was Trump’s ominous threat warranted or was he basing his threat without presenting all the facts, or perhaps before knowing all the facts.
GM issued a statement to correct Trump’s accusation as erroneous.
All Cruze sedans sold in the U.S. are made at a factory in the state [Ohio], GM notes, and while some Chevrolet Cruze hatchbacks designed for the global market are sold stateside, and are in fact made in Mexico, the vast majority of those vehicles are destined for export to other international markets.
Should Trump issue a retraction or apologetic tweet given the fact that his claim against GM does not appear to be accurate?
So far, there is no response to GM’s correction of Trump’s accusation and Trump’s tweet is still on Twitter.