Trump sends GM's stock tumbling after rage-tweeting a threat to the company
President Donald Trump fired off tweets at General Motors Tuesday and sent the company's stock tumbling, showing he is still fuming about the news that the company has decided to close down several North American plants and potentially cut more than 14,000 jobs.
"Very disappointed with General Motors and their CEO, Mary Barra, for closing plants in Ohio, Michigan and Maryland," Trump wrote. "Nothing being closed in Mexico & China. The U.S. saved General Motors, and this is the THANKS we get! We are now looking at cutting all @GM subsidies, including.... ....for electric cars. General Motors made a big China bet years ago when they built plants there (and in Mexico) - don’t think that bet is going to pay off. I am here to protect America’s Workers!"
GM's shares fell more than two percent in response to the attacks, as CNBC reported.
Just moments before, Trump's top economic adviser Larry Kudlow had suggested that some change to the company's subsidies might be coming, though he wasn't specific. Kudlow called the company's announcement a "disappointment," particularly in light of the fact that the administration had recently negotiated changes to NAFTA it claimed would be a boon for American manufacturers.
Kudlow gave no indication that GM's announcement had caused the administration to reconsider the impact of the updated trade deal.
Trump's belligerent approach to companies behaving in ways he feels make him look bad reveals his inclination toward an authoritarian view of politics and economics. It should be no surprise, though, that a president who made a campaign promise that not a single manufacturing plant under his watch would take business decisions so personally.