General Motors reduced its 2025 profit projection to $10-12.5 billion from $13.7-15.7 billion because of potential $4-5 billion losses from President Trump’s auto tariffs. The new guidance emerged after Trump issued executive orders which lowered vehicle and part tariffs by 25% and provided reimbursement for domestic vehicles and reduced multiple tariff rates.
GM CEO Mary Barra wrote to shareholders about her positive outlook for trade policy collaboration with the Trump administration while discussing ongoing discussions with trade partners. The upcoming vehicle and part tariffs at 25% starting May 3 will lead to higher prices and decreased sales according to industry analysts. The relief measures announced by Trump aim to increase U.S. manufacturing but economists predict that extensive tariffs will create economic slowdowns and reduce automobile market demand.
The pre-market stock price of GM increased by more than 2% because of the partial tariff relief. The company’s quick adjustments help reduce tariff effects yet ongoing global trade uncertainties and consumer spending challenges affect its 2025 performance according to Barra who stresses the need to adapt to changing policies.
