Investing.com -- General Motors Company (NYSE:GM) said today that its exposure to tariffs could potentially reach $5 billion.

As a result, the automaker updated its guidance to reflect an estimated impact of $4 billion to $5 billion due to tariffs. GM now forecasts a range of $8.2 billion to $10.1 billion, a haircut from its previous estimate of $11.2 billion to $12.5 billion. The new EPS-diluted-adjusted forecast is now $8.25 to $10.00, down from the previously anticipated $11.00 to $12.00.

The automaker continues to predict that its capital spending for the full year 2025, which includes investments in its battery cell manufacturing joint ventures, will be between $10.0 billion and $11.0 billion.

President Donald Trump signed executive orders Tuesday easing some of the 25% tariffs on automobiles and auto parts, marking a notable shift amid concerns the levies could harm U.S. manufacturers.

Auto companies and analysts have warned the tariffs might raise vehicle prices, dent sales, and reduce the competitiveness of American-made cars globally.

Trump framed the decision as a temporary measure aimed at supporting companies as they relocate production to the U.S.

“We just wanted to help them during this little transition, short term,” Trump said. “We didn’t want to penalize them.”

Treasury Secretary Scott Bessent said the administration’s objective is to bolster domestic auto manufacturing.

“President Trump has had meetings with both domestic and foreign auto producers, and he’s committed to bringing back auto production to the U.S.,” Bessent said.

“So we want to give the automakers a path to do that, quickly, efficiently and create as many jobs as possible.”

Related articles

GM lowers forecast, says tariff impact could reach $5 billion

NVIDIA CEO Jensen Huang discusses U.S. chip investment at White House event

Olo mulls potential sale amid takeover interest - Bloomberg