GM's $1.1 billion tariff hit bolsters mounting evidence that Americans are the ones footing the bill for Trump's import
General Motors had a more than $1 billion chunk taken out of its profits due to tariff costs, the company reported on Tuesday. GM, as well as other automakers like Stellantis, have contributed to evidence indicating American companies and consumers—not exporters—are the ones paying for tariffs.
General Motors is the latest U.S. auto giant to say tariffs have taken a chunk from their earnings. The company beat earnings expectations on Tuesday, but reported a decline in second-quarter profits, including a $1.1 billion hit as a result of hefty import taxes.
GM reported a 2% dip in sales to $47 billion, as well as $1.9 billion in quarterly profits, compared to $2.9 billion in the same period last year.
Anticipating the impact of President Donald Trump’s auto tariff policy—which outlined a 25% levy for many imported vehicles—GM withdrew its annual guidance last quarter, predicting an up to $5 billion pummelling from the levies. The company announced last month plans to invest $4 billion in domestic manufacturing plants in order to offset the cost of imports, as well as increase production capacity. Still, GM’s reliance on compact cars made in South Korea has made it vulnerable to the levies.
https://www.msn.com/en-us/money/companies/gm-s-1-1-billion-tariff-hit-bolsters-mounting-evidence-that-americans-are-the-ones-footing-the-bill-for-trump-s-import-taxes/ar-AA1J5mLd
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