President Donald Trump met with General Motors (GM) CEO Mary Barra on March 12 to discuss the automaker’s investment plans as the president’s administration pushes for more U.S.-based production. Trump, along with Commerce Secretary Howard Lutnick, has urged automakers to shift more assembly and parts manufacturing to the United States.
During the meeting, Trump told reporters that GM wanted to invest $60 billion, though the timeline for such spending remains unclear.
Automakers have expressed the need for policy stability regarding tariffs and emissions before committing to large-scale investments in North America. A GM spokesperson acknowledged the discussion, noting that the company and Trump’s goal for building a “strong and competitive American” align.
The meeting followed Trump’s recent decision to temporarily exempt automakers from a 25% tariff on Canadian and Mexican imports, provided they comply with existing free trade rules. The move came after a phone call between Trump, Barra, Ford CEO Jim Farley, and Stellantis Chair John Elkann. However, industry leaders continue to warn that prolonged trade uncertainty could severely impact U.S. manufacturing.
This week, Trump intensified tariffs on steel and aluminum, affecting nearly $150 billion in goods, including vehicles and heavy equipment. With previous exemptions and quotas expiring, automakers now face an effective 25% tariff on these materials. Farley recently warned that long-term 25% tariffs on Mexican and Canadian imports could inflict unprecedented damage on the U.S. auto industry.
Moreover, The American Automotive Policy Council, representing the Detroit Three automakers, emphasizes that U.S. car manufacturers source the majority of their steel and aluminum either domestically or from within North America. However, it cautioned that revoking exemptions for Canada and Mexico would significantly increase supplier costs.
Meanwhile, Stellantis has indicated its willingness to collaborate with the Trump administration on U.S. manufacturing investments but emphasized the need for gradual changes to avoid disruptions to business and consumers. Additionally, Trump has proposed new reciprocal tariffs effective April 2 that could sharply raise costs for imported vehicles from Europe, Japan, and South Korea.
As automakers weigh their next moves, the industry remains focused on securing clearer trade policies to guide future investment and production strategies.
