GM Falls Victim to Trump's Trade War as Metal Prices Sink Profit

[jpak]

https://www.bloomberg.com/news/articles/2018-07-25/gm-cuts-profit-forecast-as-surging-metals-prices-boosts-costs

General Motors Co. has become the highest-profile American company to fall victim to Donald Trump’s trade wars by cutting its profit forecast for this year on surging prices for steel and aluminum.

Adjusted earnings will drop to about $6 a share, down from a previous projection for as much as $6.50 a share, the Detroit-based company said Wednesday. Raw material costs probably will be a $1 billion headwind -- roughly double GM’s previous expectation. The carmaker’s shares are on course for their steepest one-day plunge in more than seven years.

The hit to GM’s profit underscores the risk that Donald Trump’s policies pose to automakers. While the U.S. president is moving to weaken fuel economy mandates, his tariffs on steel and aluminum -- and potentially on imported cars -- is undercutting what was shaping up to be a near-record year for an iconic American company that weeks ago was riding high on a $2.25 billion investment in its autonomous-driving unit.

General Motors Co. has become the highest-profile American company to fall victim to Donald Trump’s trade wars by cutting its profit forecast for this year on surging prices for steel and aluminum.

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[louis-t]

1. Another win!!!1!111

[Quemado]

2. Will there be a multi-billion $ bailout for the auto industry

a la the $12 billion dollar bailout for farmers?

[workinclasszero]

3. But...but...