President Trump said he may try to eliminate electric car subsidies for GM after it announced it will close factories and lay off thousands of U.S. workers
President Trump threatened to cut subsidies for General Motors, in retaliation for the carmaker's decision to idle five North American auto plants and lay off some 14,000 workers.
GM's decision to shutter factories and fire workers undermines Mr. Trump's campaign promises to keep manufacturing jobs in the U.S.
Under federal law, buyers of electric vehicles can get a $7,500 tax credit as an incentive to balance out the slightly higher upfront cost of the car.
Kudlow also said the U.S. is considering adding "certain subsidies regarding electric cars" to keep GM business from going to China, although Mr. Trump's tweets would seem to contradict that.
White House economic adviser Larry Kudlow also expressed disappointment after meeting with GM's CEO, Mary Barra, on Monday.
JUST IN: Trump threatens to end subsidies for GM over plant closures
President Donald Trump threatened in a tweet Tuesday to cut off all government subsidies to General Motors, including electric cars, following the company's announcement of layoffs and plant closures.
GM complains that Trump's tariffs on steel and aluminum have cut into the company's profits this year.
Yes! @realDonaldTrump is right to seek an end to subsidies for #GMs electric cars....Actually we should end the 7,500 tax credit for ALL electric cars. You want an electric car? Pay for it!
Kristin Dziczek of the Center for Automotive Research in Michigan argued it would be shortsighted for the federal government to target GM's electric cars for punishment, since those are expected to play a growing role in the industry's future.
On Monday, GM put numbers to the expected announcement of layoffs following its offer of buyouts to workers weeks ago, announcing around 15,000 layoffs and possible plant closures.
GM may hit that limit by the end of this year, even without Mr. Trump's threats to cut subsidies, although the company is also the recipient of other federal grants.
Trumps threat to cut GMs electric-car subsidies is completely meaningless
BREAKING NEWS: Trump warns U.S. may cut off GM subsidies after job cuts. Click for more …
Its a great disappointment obviously, Larry Kudlow says of the GM layoffs. He says the White House will be looking into certain electric car subsidies.
Trump tweeted on Tuesday, referring to the federal government's rescue of GM and Chrysler-Fiat during the depths of the recession nearly a decade ago.
"Very disappointed with General Motors and their CEO, Mary Barra, for closing plants in Ohio, Michigan and Maryland," the president tweeted.
More @cbcnews Trump threatens to cut GMs electric car subsidies over plant closures.
The Cruze GM plant just outside Youngstown, Ohio, is in a Democratic and labor stronghold, where Mr. Trump won a surprising number of voters two years ago by reaching out to what he called America's "forgotten men and women."