General Motors on Thursday revealed plans to dramatically boost vehicle production in Indiana, a decision made in response to President Donald Trump's newly imposed tariffs. The announcement came just a day after Trump announced 25% tariff on all imported cars and auto parts, aiming to boost the auto industry and help it "flourish like never before."
The president had unveiled the tariff plan last month, saying it would take effect on April 2, a date he referred to as "Liberation Day." Seizing the opportunity, GM announced plans to bring on several hundred temporary workers for its assembly line at the Fort Wayne plant to boost production at the domestic level.
GM Seizes Trump's Tariff Opportunity
The Fort Wayne facility produces the Chevrolet Silverado and GMC Sierra pickup trucks, which are also assembled by GM in Canada and Mexico. In a statement released on Thursday, GM said the hiring of temporary employees is part of "operational adjustments" at the plant aimed at meeting current production and business demands.
Although Indiana is set to gain hundreds of new jobs, experts warned that the added benefit may come at a cost to consumers, who could end up paying thousands more for vehicles.
The Anderson Economic Group explained that this price increase would stem from automakers—including GM—continuing to rely on imported parts from other countries.
Initially, Trump's tariff announcement had a negative impact on GM, as the company has extensive manufacturing operations in both Mexico and Canada. On March 27, GM's stock tumbled over 7 percent, with investors concerned that the tariffs would leave the automaker exposed to financial risk.
As of 3 p.m. ET on Thursday, the stock was down 1.76 percent.
GM's Big Plans to Ramp up Domestic Production
To carry out the planned changes at the Fort Wayne plant, GM announced it will halt operations there from April 22 to 25, right after the Easter holiday. A company source told Reuters that GM's facilities in Oshawa, Canada, and Silao, Mexico—where the same truck models are built—are continuing normal production for now.
The 25 percent tariff applies to all vehicles not manufactured within the United States. According to the White House, Americans purchased around 16 million cars, SUVs, and light trucks in 2024, with roughly half of those being imported.
"A 2024 study on the effects of President Trump's tariffs in his first term found that they 'strengthened the U.S. economy' and 'led to significant reshoring' in industries like manufacturing and steel production."
A study by the global consulting firm McKinsey & Company found that international tariffs on steel contributed to the creation of over 4,000 new jobs in the United States.
The report noted that tariffs on steel and goods imported from China led to a 24 percent decline in imports of the affected steel products and a 1.9 percent increase in domestic steel production.
However, separate research from the Federal Reserve Bank of New York suggested that tariffs imposed by Trump during his first term had a negative effect on the U.S. economy. The study revealed that the U.S. stock market plummeted 11.5 percent on days when new tariffs were announced, causing an estimated $4.1 trillion decline in corporate equity value.
This same pattern repeated on Thursday, as Trump's latest tariffs sparked renewed fears of both a U.S. and global economic downturn.
