SAN DIEGO (Border Report) — General Motors says it stands to lose up to $5 billion this year due to tariff-related costs.
On April 3, President Donald Trump implemented 25% tariffs on imported vehicles and auto parts as a way to protect national security and force manufacturers to bring jobs back to the U.S.
Two days ago, the president eased some of those tariffs.
GM is now projecting it will not meet its $15.7 billion predicted earnings for the year and instead make anywhere from $10 billion to $12.5 billion.
“As you know, there are ongoing discussions with key trade partners that may also have an impact,” said company CEO Mary Barra in a letter to shareholders this week. “We will continue to be nimble and disciplined and update you as we know more.”
According to motor1.com, an online agency that tracks news in the auto industry, GM’s sales in the U.S. were up 17% for the first three months of 2025, due in part to consumers buying new cars before full effects of the tariffs kicked in.
the site also reports that nearly all of GM’s tariff costs come from products produced in South Korea, Canada, and Mexico.
Industry analysts say GM’s lower profits will also affect its workers who are part of the company’s profit-sharing program. Each employee stands to lose anywhere from $1,000 to $5,000 in yearly bonuses.
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