DETROIT – General Motors Co. said Tuesday that automobile tariffs enacted by the Trump administration impacted profits during the second quarter by more than $1 billion.
GM reported that its profit was $1.9 billion for the three months ended June 30, compared with $2.93 billion during the same period a year ago. The company said it expects the net impact during the third quarter to be greater “due to the timing of indirect tariff costs.”
The automaker reported that its forecast related to tariff impact for calendar year 2025 remains unchanged at between $4 billion and $5 billion.
In April, the Trump administration imposed a 25% tariff on all automobiles shipped to the U.S.
Sales declined 2% to $47 billion during the quarter compared with year-ago figures, GM reported.
In a letter to shareholders, GM Chair and CEO Mary Barra said the company is taking measures to reduce the impact of tariffs and trade policy.
“We are positioning the business for a profitable, long-term future as we adapt to new trade and tax policies, and a rapidly evolving tech landscape,” Barra wrote. She pointed out GM’s announcement in June that it would invest $4 billion in its U.S. assembly plants to add 300,000 units of capacity for high-margin light-duty pickups, full-size SUVs and crossovers. That capacity should begin coming online in 18 months, she said. The company expects to build 2 million vehicles per year in the U.S., she said.
Barra also reported that despite a slow-down in electric vehicle sales, GM’s long-term future is “profitable electric vehicle production, and this continues to be our north star.”
Chevrolet, she noted, became the No. 2 selling EV brand in the country during the second quarter.