GM Lowers 2025 Profit Forecast Due to Tariff Concerns

Published 3 hours agoGM

GM Lowers 2025 Profit Forecast Due to Tariff Concerns

General Motors has cut its 2025 profit forecast, citing the hefty financial burden of newly adjusted automotive tariffs. The company now predicts an annual adjusted core profit in the range of $10 billion to $12.5 billion, a significant drop from initial forecasts of $13.7 billion to $15.7 billion. With expected tariff-related costs ranging from $4 billion to $5 billion, the revised numbers reflect a tough market environment. Reuters reported these newly imposed tariffs are complicating financial projections for several major automakers.

Alongside the decline in profit forecast, GM has also adjusted its net income estimates. The automaker expects to see an annual net income between $8.2 billion and $10.1 billion, reduced from earlier projections of $11.2 billion to $12.5 billion. The ripple effects of U.S. President Donald Trump's evolving trade policies and a steep 25% tariff on imported vehicles have even led companies like Stellantis and Mercedes-Benz to withdraw their profit forecasts altogether.

CEO Mary Barra addressed these challenges, emphasizing GM's ongoing dialogue with the Trump administration and international trade partners to manage these policy shifts. Despite these efforts, GM's stock took a hit amidst investor worries over the updated financial outlook.

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