GM Surpasses Q2 Earnings Expectations Despite $1.1B Tariff Blow
General Motors reported stronger-than-expected second-quarter earnings on Tuesday, yet disclosed a staggering $1.1 billion hit due to President Trump’s auto tariffs during the same period. The Detroit-based automaker posted adjusted earnings of $2.53 per share, surpassing analyst expectations of $2.44. Furthermore, revenue reached a robust $47.12 billion, compared to the projected $46.28 billion.
The enormous tariff impact slashed GM’s profit margin from 9% to a mere 6.1%, representing a significant blow to the company’s profitability. CFO Paul Jacobson revealed that GM’s operations in South Korea alone account for $2 billion of the expected full-year tariff costs, which could escalate to $4-5 billion in 2025. In response, the company has announced a hefty $4 billion investment in American manufacturing facilities to curb its tariff exposure and bolster domestic production capabilities.
Despite the tariff headwinds, GM remains steadfast, maintaining its full-year guidance. The company indicated it is making solid progress towards mitigating at least 30% of the anticipated cost increases through strategic manufacturing adjustments and pricing decisions. This earnings report underscores how Trump’s trade policies are significantly impacting major American corporations, even those with substantial domestic operations.
Source: https://fortune.com/2025/07/22/who-is-paying-for-tariffs-americans-exporters-general-motors/