Trump rates reduce GM profits to $ 1.1 billion in the quarter

by Andrea
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The largest automaker in the US maintains negative impact projection of $ 4 billion to $ 5 billion in the year

(General Motors) was profit from the 2nd quarter of 2025 reduced to $ 1.1 billion because of the commercial tariffs imposed by President Donald Trump. The information is released in the released this 3rd (22.Jul.2025) by the American company. Here’s (PDF – 372 kb)

Despite the fall, the result exceeded the expectations of analysts. The reason was robust sales of gasoline and SUV trucks in the US market.

The automaker registered a profit adjusted per share of $ 2.53, above the estimate of US $ 2.44, but below $ 3.06 from the same period of 2024. The revenue was $ 47 billion, nearly 2% drop over the previous year.

GM maintained the forecast that the negative commercial impact could reach between $ 4 billion and $ 5 billion in 2025. In the quarter, the adjusted profit before interest and taxes dropped 32%to $ 3 billion, leading the company to reduce its annual profit estimated to between $ 10 billion and $ 12.5 billion. Sales in the US grew 7% and the company profited again in China after a loss the previous year.

GM’s shares fell about 6% at the beginning of the trading session of this Thursday (22.Jul). Competitor Stellantis, who manufactures jeeps, said the tariffs have cost 300 million euros in the first half and should affect the results of the 2nd. GM said it could mitigate 30% of the effects of tariffs with internal measures.

In June, the company announced a $ 4 billion investment in 3 factories in the US – in Michigan, Kansas and Tennessee -, including Cadillac Scale production transfer and increased pickup production. Today, half of the vehicles sold by GM in the US is imported, especially from Mexico and South Korea. Ford, on the other hand, produces 80% of its cars to the domestic market within the US.

A new law passed by Congress will end, from September, with tax credits of $ 7,500 for new electric cars and $ 4,000 for used. Despite the difficulties, GM CEO, Mary Barra, reaffirmed the company’s commitment to electric vehicles, noting that the profitable production of this segment remains “the guide star”From the company.

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