GM says second-quarter core profits fell 32% due to Trump's tariffs
The US automaker's second-quarter core profit fell 32% to $3bn and said it expects the tariff impact to worsen in the third quarter. The company stuck to a previous estimate that trade headwinds threaten to hit the bottom line by $4bn to $5bn. GM said it could take steps to mitigate at least 30% of that impact.
The automaker's revenue in the quarter ending on 30 June fell nearly 2% to about $47bn from a year ago. Shares fell about 3% in premarket trade.
In a letter to shareholders, Mary Barra, the chief executive, said GM is 'positioning the business for a profitable, long-term future as we adapt to new trade and tax policies, and a rapidly evolving tech landscape'.
GM was among corporations that revised annual guidance due to the impact from Trump's tariffs, lowering it to an annual adjusted core profit of between $10bn and $12.5bn. The company on Tuesday stood by that forecast.
Beyond tariffs, GM's underlying business in the quarter was solid. Sales in the US market – its main profit center – rose 7%, while the company continued to command strong pricing on its pickup trucks and SUVs. GM swung back to a small profit in China, after losing money there a year earlier.
Jeep-maker Stellantis on Monday warned that tariffs would significantly affect results in the second half of 2025, and said tariffs cost it about $350m.
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