NEW YORK: General Motors on Thursday lowered its 2025 earnings outlook and said it expects a $4-5 billion hit from US President Donald Trump’s tariffs, despite moves this week to dampen the blow.
On Tuesday, Trump signed an executive order to limit the impact of multiple overlapping tariffs on automakers.
He also released a proclamation that gives the industry a two-year grace period to move supply chains back to the United States and reduce “American reliance on imports of foreign automobiles and their parts.”
GM reported its first quarter results on Tuesday, but delayed its conference call after the Wall Street Journal reported a day earlier that Trump would soon be making moves on auto tariffs.
“Incorporating the positive impact of the Administration’s actions this week, we are updating our full-year EBIT-adjusted guidance to a range of $10 billion - $12.5 billion, including a current tariff exposure of $4 billion - $5 billion,” CEO Mary Barra said in a letter to shareholders.
GM pulls forecast due to tariffs as nervous consumers rush to buy
“We look forward to maintaining our strong dialogue with the Administration on trade and other policies as they continue to evolve,” said Barra, who added that the company was “grateful to President Trump for his support of the U.S. automotive industry. “
US automakers have been among the hardest-hit sectors because the tariffs affect imports from Mexico and Canada.
Detroit carmakers maintained investments in those markets after Trump renegotiated the North American Free Trade Agreement during his first term.
Analysts have warned that the tariffs could result in higher prices, denting US car sales and threatening jobs.
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