General Motors has reduced its profit forecast for 2025 by over 20%, citing the impact of tariffs imposed by the Trump administration. These tariffs are expected to increase GM’s costs by $4 billion to $5 billion this year. During a conference call, GM executives revised their profit expectations to $8.2 billion to $10.1 billion, down from the earlier projection of $11.2 billion to $12.5 billion. CEO Mary T. Barra emphasized the company’s resilience in adapting to the new trade policy environment. GM plans to offset about 30% of the tariff impact by boosting production in U.S. plants, cutting costs, and encouraging suppliers to increase domestic production. Approximately $2 billion in additional costs stem from vehicles manufactured in Canada, Mexico, and South Korea. GM anticipates new vehicle prices to rise between 0.5% and 1% this year, reversing previous expectations of a price decline.
— new from The New York Times
