Trump tariffs take $1-billion bite out of GM earnings, shares fall [View all]

Source: Reuters

General Motors second-quarter earnings took a $1.1-billion hit from tariffs, but the automaker still beat analyst expectations for the period on Tuesday, supported by strong sales of its core gasoline trucks and SUVs.

The largest U.S. automaker by sales said it expects the tariff impact to worsen in the third quarter and stuck to a previous estimate that trade headwinds threaten to hit the bottom line by $4 billion to $5 billion this year. GM said it could take steps to mitigate at least 30% of that impact.

The automaker's revenue in the quarter ended June 30 fell nearly 2% to about $47 billion from a year ago. Its quarterly adjusted earnings per share fell to $2.53 compared with $3.06 a year earlier. Analysts on average expected adjusted profit of $2.44 per share, according to data compiled by LSEG. Its adjusted earnings before interest and taxes fell 32% to $3 billion.

GM was among corporations that revised annual guidance due to the impact from U.S. President Donald Trump's tariffs, lowering it to an annual adjusted core profit of between $10 billion and $12.5 billion. The company on Tuesday stood by that forecast.

Read more: https://www.reuters.com/business/autos-transportation/trump-tariffs-take-1-billion-bite-out-gm-earnings-shares-fall-2025-07-22/