Trump Tariffs Deal a Heavy Blow to GM, Resulting in $1.1B Q2 Profit Loss
General Motors (GM) has reported a significant impact from the tariffs imposed by the Trump administration, with the automaker losing a staggering $1.1 billion in the second quarter alone. This loss represents about 3 percentage points of margin pressure.
Despite beating Wall Street estimates with $2.53 earnings per share, GM’s adjusted earnings fell 32% to $3.0 billion compared to Q2 2024. The Detroit-based automaker expects tariffs to cost between $4-5 billion for the full year 2025. However, it aims to offset about 30% of this through manufacturing adjustments and cost initiatives.
GM’s stock dropped 8% following the earnings announcement, as investors showed concern over the company’s strategy of absorbing tariff costs rather than passing them to consumers.
Despite these challenges, GM demonstrated strong operational performance. The company’s U.S. market share grew to 17.4% and electric vehicle sales surged 111% year-over-year. GM maintained its full-year guidance and announced nearly $5 billion in U.S. manufacturing investments through 2027.
Source: CNBC