Donald Trump tells General Motors to 'make in USA or pay big border tax'

The President-elect called out the company for making its Chevy Cruze model in Mexico

Donald Trump, President,

File photo. PA Images

Donald Trump has taken aim at US car giant General Motors in his latest clash with big business as he prepares to take office.

The President-elect threatened to impose a "big border tax" on the company for making its Chevrolet Cruze model in Mexico.

GM shares slipped 1% in pre-market trading after Mr Trump made the remarks in a tweet - though they later improved and turned 1% higher shortly after Wall Street opened.

Mr Trump wrote:

GM becomes the latest US industrial giant to feel the brunt of Mr Trump's remarks ahead of his inauguration later this month.

Mr Trump has previously taken aim at aerospace manufacturers Lockheed and Boeing over contracts with the US government he has claimed were too expensive.

Mr Trump has been critical of car giant Ford in the past over its investments in Mexico.

More broadly he has threatened to slap tariffs of 35% on imports of products made by companies that have moved production out of the US, and said he would tear up a major trade agreement with Mexico and Canada.

Last month he warned that firms shifting jobs away from America could be "making a very expensive mistake" and would face "retribution or consequence".

Mr Trump has also pledged to lower the corporate tax rate and scale back regulations to create a better climate in the US for business.

General Motors brands include the Chevrolet, Cadillac and Buick as well as Germany's Opel and Britain's Vauxhall.

GM said that it makes the sedan model of its Chevy Cruze in the US and that all of those sold in the US were made at a plant in Ohio.

A hatchback version is made for global markets in Mexico, with a small number sold in the US, it said in a statement.