GM Records Low Profits Due To US Import Duties

GM has factories in Mexico and Canada, and those countries were hit with tariffs on the export of cars and parts to the United States. According to GM, the tariffs impacted its profitability by $1.1 billion. The company posted a net profit of $1.9 billion, down 35 percent from a year earlier. GM is also facing higher costs for imported steel and aluminium due to Trump’s tariffs.

GM says the tariffs’ impact is estimated at $4 to $5 billion for 2025 as a whole. The Detroit-based company is investing billions to expand its U.S. production capacity.

GM aims to absorb at least 30 percent of these import costs throughout 2025 through cost reductions and adjustments to production processes. At the beginning of May, the company lowered its profit forecast for this year due to these tariffs. The company is now leaving that forecast unchanged.

Sales in the recent period decreased by almost 2 percent to over 47 billion dollars.

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