By Stephen Wilmot
General Motors has delivered its first estimate of the impact of President Trump's tariffs on this year's profit: $4 billion to $5 billion.
The largest U.S. automaker imported more than one-third of the vehicles it sold in the country last year, mostly from Mexico, Canada and South Korea. Since early April, those imports have been subject to an additional auto tariff of 25%.
GM now expects an adjusted operating profit of $10 billion to $12.5 billion this year, down from a previous range of $13.7 billion to $15.7 billion.
The cut to guidance is lower than the anticipated tariff impact, because GM expects to recoup some of the losses with higher prices. It now sees vehicle prices in North America rising 1% on last year. In January, the company had assumed prices would fall by 1% to 1.5%.
The stock, which fell when the company pulled its guidance Tuesday, rose in premarket trading, as investors welcomed the clarity.
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(END) Dow Jones Newswires
May 01, 2025 07:30 ET (11:30 GMT)
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