WASHINGTON, May 1 (AP) GM is lowering profit expectations for the year as automakers’ braces roll out on the potential impact of the potential.
GM announced earlier this week that it reassessed its expectations for 2025 due to tariffs. The company said at the time that its initial full-year financial outlook did not take into account its potential impact.
The automaker said Thursday that it now expects full-year adjusted earnings to be taxed at $10 billion to $11.5 billion before interest. The guide includes current tariff exposure of $4 billion to $5 billion.
General Motors previously predicted an adjusted EBIT between $13.7 billion and $15.7 billion in 2025.
The revised forecast is a major reversal after President Donald Trump signed an execution order on Tuesday to relax some of his 25% tariff on cars and auto parts, as import taxes could harm domestic manufacturers.
Automakers and independent analysis show that tariffs can increase prices, reduce sales and make the U.S. less competitive on a global scale. Trump described the changes as bridges to automakers, shifting more production to the United States.
Still, it is unclear what impact Trump’s broader tariffs on the U.S. economy and car sales will have. Most economists say these tariffs could end up reaching the most imports, which would raise prices and slow economic growth, which could hurt car sales, despite the government’s intention to provide relief to its previous policies.
General Motors CEO Mary Barra said in a letter to shareholders on Thursday that automakers are looking forward to maintaining strong dialogue with the Trump administration on trade and other evolving policies.
“As you know, the ongoing discussions with major trading partners may also have an impact,” she said. “We will continue to be agile, disciplined and as we understand and update you.”
GM shares climbed more than 2% before the opening clock. (AP)NPK NPK
