GM Cuts 2025 Outlook Citing Trump Tariffs

General Motors (GM) has cut its 2025 profit outlook, citing an expected $4–$5 billion impact from President Trump’s 25% tariffs on imported vehicles and auto parts. The company reduced its adjusted EBIT forecast from $13.7–$15.7 billion to $10–$12.5 billion and canceled $4 billion in stock buybacks. Despite executive orders that provide temporary relief and offset credits for vehicles with substantial North American content, GM still anticipates significant financial headwinds but plans to mitigate about 30% of the impact through increased U.S. production and cost-cutting. GM has stated it will not increase vehicle prices to offset the tariffs, although economists warn higher consumer prices and reduced sales are still likely. The company delayed its earnings call to incorporate tariff revisions. Other automakers, including Mercedes-Benz, are also shifting more production to the U.S. in response to the changing trade environment.