General Motors (GM) has revised its financial outlook for 2025, reflecting concerns over continued tariff uncertainties. The automaker now expects its adjusted earnings before interest and taxes (EBIT) to fall between $10 billion and $12.5 billion. This is a significant decrease from the earlier projection of $13.7 billion to $15.7 billion, as reported by the Associated Press.
The revision comes amid expectations that new automotive tariffs could cost GM between $4 billion and $5 billion, which is nearly a third of its anticipated annual profits. Axios highlighted this potential cost, underscoring the substantial financial impact these tariffs can impose. GM plans to counterbalance these increased expenses by ramping up U.S. production and focusing on cost efficiencies within its electric vehicle sector, striving to absorb about 30% of the tariff impacts without major price hikes.
To further mitigate the effects, GM is considering adjustments to its supply chain. This includes a possible shift of some production from Mexico to its Indiana facility, along with a review of its dependency on imports from countries like South Korea, Mexico, and Canada. CEO Mary Barra has emphasized GM's active discussions with the administration to navigate these changing trade dynamics, maintaining the company's flexibility in the face of evolving policies.
