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3w ago

GM Projects $5 Billion Tariff Hit as White House Downplays Consumer Impact

Automakers and economists challenge White House claims that tariffs won't raise car prices, with GM planning production shifts to offset costs.

Vehicles on the trim assembly line at the General Motors assembly plant in Fort Wayne, Indiana, on April 9, 2024.
A car hauler truck makes its way to the Ambassador Bridge in Windsor, Canada to cross into the United States on April 1.
A worker uses a forklift to move steel and aluminum materials at an auto parts manufacturer in San Luis Potosi, Mexico, on February 17. US President Donald Trump's tariffs against Canada and Mexico threaten production at automakers across North America.
Jim Farley, President and Chief Executive Officer of Ford, speaks at the Ford Motor Company Kentucky Truck Plant to launch the 2025 Ford Expedition, Wednesday, April 30, 2025, in Louisville, Ky.

Overview

  • General Motors anticipates a $5 billion earnings impact from President Trump's 25% tariffs on imported vehicles and parts, with plans to offset at least 30% through production and supply chain adjustments.
  • The White House, represented by Stephen Miller, maintains that Americans will not face higher car prices due to the tariffs, citing incentives for domestic manufacturing.
  • Ford CEO Jim Farley expressed skepticism, declining to guarantee that U.S. consumers would avoid price increases on Ford vehicles this summer.
  • Economists, including the Anderson Economic Group, estimate that tariffs could add between $2,000 and $12,000 to vehicle costs, depending on the model and import reliance.
  • GM reported a nearly 2% year-on-year market share gain in Q1, citing strong pricing and low incentives, while CEO Mary Barra praised recent White House measures to ease parts tariff impacts.