In 2025, U.S. automakers like GM faced 25% tariffs on automotive imports, impacting each Detroit Big 3 automaker differently based on their U.S. manufacturing percentages. GM imported 1.23 million vehicles in 2024, leading to an expected $4-5 billion in tariff charges for the year, with $2 billion attributed to Korea.

Despite facing $3.1 billion in tariff fees in 2025, GM managed to offset over 40% of these costs through production and cost reduction initiatives. The tariffs caused a $2.5 billion year-over-year decrease in adjusted free cash flow and a $700 million decline in EBIT, with margins dropping to 6.2%.

GM’s fourth-quarter and full-year results revealed $3.1 billion in total tariff costs, below the predicted range. The company’s CFO credited strong execution and favorable policy developments for the lower costs, emphasizing the benefit of a reduced tariff rate for Korea. GM plans to overhaul its manufacturing footprint in 2026, increasing U.S. production and capacity.

GM’s shift away from electric vehicles resulted in $7.2 billion in special charges, impacting its net income. Despite this setback, the company plans to reward shareholders with share buybacks and increased dividends, as its overall strategy continues to generate strong cash flow.

GM’s board approved a $6 billion share repurchase program and a 3-cent-per-share increase in dividends, reflecting the company’s commitment to capital allocation and shareholder rewards. CEO Mary Barra attributes this success to GM’s strong brands, vehicles, technology services, and operating discipline.

Read more at Yahoo Finance: GM exec explains how it beat tariffs in 2025