GM Cuts 2025 Profit Forecast As Tariff Results In Up To $5 Billion Impact
DETROIT, May 1 (Reuters) - General Motors GM.N cut its 2025 profit forecast on Thursday after receiving some clarity and reprieve from the White House this week on automotive tariffs.
General Motors shares rose 2.8% in premarket.
CEO Mary Barra told shareholders in a letter that the company would maintain strong dialogue with the Trump administration on trade and other policies as they evolve.
"There are ongoing discussions with key trade partners that may also have an impact," Barra said.
The Detroit automaker released the new forecast two days after pulling a previous one issued in January that did not take into account the automotive tariffs, and after the Trump administration made changes them.
The automaker expects to notch an annual adjusted core profit between $10 billion and $12.5 billion, including a current tariff exposure of between $4 billion and $5 billion.
GM's previous guidance for earnings before interest and taxes was between $13.7 billion and $15.7 billion.
It expects to earn an annual net income of between $8.2 billion and $10.1 billion, down its from prior range of $11.2 billion and $12.5 billion.
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