General Motors reported a $1.1 billion hit to operating income due to Trump’s tariffs in the last quarter, with core profit falling 32% to $3 billion. The automaker’s revenue dropped nearly 2% to $47 billion, and it anticipates a further tariff impact in the third quarter. GM aims to mitigate at least 30% of the impact.

GM, the largest US auto manufacturer by market share, employs around 162,000 globally and is adapting to new trade policies. The company revised annual guidance to an adjusted core profit between $10 billion and $12.5 billion due to the tariff impact. Trump imposed 25% tariffs on foreign-made vehicles and parts in April.

In June 2025, GM announced a $4 billion investment in US auto plants to reduce tariff exposure. The new manufacturing capacity will come online in 18 months. Despite tariff challenges, GM’s US sales rose 7%, with strong pricing on trucks and SUVs. Stellantis warned of significant tariff impact on its second-half results, costing $350 million.

US inflation rose to 2.7% in June, prompting companies to raise prices in response to tariff rates. A report by the Brookings Institute highlighted the uncertain impact of tariffs on US auto manufacturing, potentially leading to negative consequences. Reuters contributed to this story.

Read more at Yahoo Finance: GM says second-quarter core profits fell 32% due to Trump’s tariffs