Japan, tariff edge and auto imports
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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.
Tariffs on imported cars and auto parts cost General Motors $1.1 billion in the second quarter, the nation’s largest automaker said Tuesday.
President Donald Trump’s 25% tariffs on imported vehicles and parts have sent shockwaves through the U.S. auto industry.
General Motors Co.’s second-quarter profit fell as President Donald Trump’s tariffs on foreign-made vehicles and parts chopped $1.1 billion from adjusted earnings.
The impacts will be felt more broadly in many industries, and the question is when the choice becomes to preserve profits by raising prices.
GM said earnings in the second quarter reflect a more than $1 billion hit from President Donald Trump's tariffs.
GM CEO Mary Barra hasn’t ruled out raising car prices, however, and has said the company will stay competitive.
Expenses related to its 6.2-liter V-8 and higher claims due to software issues from EVs that launched over the past 5 years increased by $300M.
GM surprised analysts with Q2 2025 earnings, but a $1.1 billion tariff hit caused net income to plummet 35% year-over-year. Get the full financial breakdown.