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.
This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).
(END) Dow Jones Newswires
May 01, 2025 07:30 ET (11:30 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.