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GM Cuts Profit Forecast by $5 Billion Following New U.S. Auto Tariffs

The automaker plans to offset 30% of tariff impacts through production shifts and supply-chain adjustments while maintaining capital investments.

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GM said it is monitoring trade talks between the Trump administration and South Korea, where it assembles the Chevrolet Trax, which is popular with value-conscious US customers

Overview

  • General Motors revised its 2025 adjusted earnings per share forecast to $8.25–$10.00, down from $11.00–$12.00, citing $4–$5 billion in tariff-related costs.
  • Adjusted EBIT projections were lowered to $10.0–$12.5 billion from $13.7–$15.7 billion due to the 25% tariffs on imported vehicles and parts.
  • The company announced measures to mitigate at least 30% of the tariff impact by increasing U.S. production and modifying its supply chain.
  • GM reaffirmed its commitment to $10–$11 billion in U.S. capital spending despite the financial hit from the tariffs.
  • CEO Mary Barra emphasized ongoing discussions with the Trump administration, which recently introduced measures to ease tariff stacking and offer partial reimbursements.