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Trump dealt a blow to GM's stock to prove a point ahead of 2020



The's the sole purpose of President Trump's threat to General Motors ("We are now looking at cutting all @GM subsidies, including for electric cars") was to send a signal to his supporters in the states that will be affected.

When Trump targeted the car maker Tuesday on Twitter, GM's stock immediately dropped nearly 4 percent, though it crawled back in the next hours.

GM said Monday that cutting its salaried workforce by 15 percent and closing several plants in North America, including in Ohio and Michigan, to prepare for future market changes.

Trump, campaigning largely on a promise to reinvigorate manufacturing jobs in the US, won both states in the 2016 election.

CNN, citing an unnamed person "familiar with the matter," reported that there may not even be any actual government subdues for Trump to shut off.

But the threat was not so much a shot at getting GM to immediately reverse course as it was a throwback to Trump's campaign theme that American workers are getting shafted.

"Very disappointed with General Motors and their CEO, Mary Barra, for closing plants in Ohio, Michigan and Maryland," he said in his tweet. "Nothing is closed in Mexico and China. The US saved General Motors, and this is the THANKS we get!"

GM gave no indication that it changed its mind, saying in a statement, "We appreciate the actions this administration has taken in the name of industry to improve overall competitiveness of US manufacturing."

But the conflict reminds Trump supporters why they elected him, and that was the point.


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