General Motors Adjusts Profit Forecast Amid Tariff Uncertainty
Detroit, MI — General Motors (G.M.) announced on Tuesday that it is retracting its previous profit growth forecast due to the unpredictability stemming from President Trump’s trade policies. This shift is prompted by the recent implementation of a 25 percent tariff on imported cars and an impending 25 percent duty on imported auto parts, which could substantially impact G.M.’s financial performance.
During a conference call with reporters, G.M. Chief Financial Officer Paul Jacobson emphasized that the company will refrain from offering new financial guidance regarding tariffs until clearer information is available. “We don’t want to put out a number that is just a guess amid potential changes,” he stated, expressing concerns that the tariffs could have a "material" effect on earnings this year.
The company, which typically sells about half of its vehicles manufactured abroad—mainly from Canada and Mexico—reported earnings of $2.8 billion in the first quarter, a 7 percent decline from the previous year. This drop can be attributed to a 14 percent decrease in earnings before interest and taxes in North America, where G.M. generates the majority of its profits.
Although G.M. previously estimated a net income of between $11.2 billion and $12.5 billion for 2025—doubled from a $6 billion profit last year—Jacobson warned that the prior guidance is no longer reliable. The company has experienced small profits from its international ventures, yet its outlook remains troubled due to heightened costs from increased tariffs on steel and aluminum.
G.M.’s CEO Mary T. Barra was expected to discuss the earnings report in a press call, but the meeting has been postponed pending new developments from the White House regarding auto tariffs. Jacobson indicated productive discussions with the administration but refrained from negotiating publicly. “We look forward to more clarity around the tariff situation for the auto industry.”
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