Trump’s Tariffs: A $1B Blow to General Motors
General Motors revealed on Tuesday that President Trump’s tariffs have dealt a significant blow to their finances. The automaker absorbed a cost of over $1 billion in the second quarter, choosing not to pass these costs onto consumers. This disclosure underscores the extent to which American businesses are shouldering the burden of the administration’s trade policies.
The scale of Trump’s tariff regime has reached unprecedented levels. The average applied US tariff rate has skyrocketed from 2.5% to an estimated 27% between January and April 2025. This is the highest it has been in over a century. In June alone, the government collected $27 billion in tariff revenue, a figure that is four times the typical monthly amount prior to Trump’s return to office.
Several companies are feeling the heat. Conagra Brands, for instance, is planning to increase prices on canned goods due to tariffs on tinplate steel. Nike is bracing for $1 billion in new import taxes this year. Puma has reported an expected annual loss, in part due to US tariffs. Despite Trump’s assertions that foreign countries foot the bill, economists argue that it is American businesses and consumers who bear the brunt of the cost.
Source: Bloomberg