GM’s Tariffs Could Cut $5B From Profits Amid Policy Changes
GM’s Profits at Risk Due to Tariffs
American automaker General Motors (GM) has projected that tariffs enforced by President Trump could reduce its profits by as much as $5 billion this year. In a letter to investors, CEO Mary Barra emphasized the ongoing dialogue with the administration, stating that these discussions began before the current presidency.
Projected Earnings Impact
Barra noted in her communication that, despite the potential financial setback from tariffs, GM expects to achieve $10 billion to $12.5 billion in earnings before interest and taxes. The anticipated losses stem exclusively from the recent tariff impositions.
Policy Adjustments
- On Tuesday, the president signed executive orders to rollback tariffs on imported automobiles and parts.
- Foreign auto parts will be exempt from experiencing dual tariffs.
- Automakers can apply for price offsets of 15 percent in the first year and 10 percent in the subsequent year.
Barra expressed optimism about continuing to maintain dialogue with the Administration concerning trade policies that could affect the automotive industry.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.