GM reports $1.1 billion tariff impact as automaker works to 'greatly reduce' exposure
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General Motors reported second-quarter earnings that beat Wall Street’s estimates, despite ongoing uncertainty from President Donald Trump's auto tariffs.
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July 22, 2025
08:23 PM
CNBC
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I find it compelling that General Motors reported second-quarter earnings Tuesday that beat Wall Street’s estimates, despite uncertainty from President Donald Trump's auto tariffs
The automaker affirmed its full-year guidance, which it had lowered in May to include a possible $4 billion to $5 billion impact from auto tariffs
On the other hand, The company's core fit fell 31 (something worth watching). 04 billion
In this articleGM your favorite stocksCREATE FREE ACCOUNTwatch now4:1704:17GM beats earnings estimates as CEO says automaker works to ‘greatly reduce’ tariff exposureSquawk BoxGeneral Motors reported second-quarter earnings Tuesday that beat Wall Street's estimates and affirmed its full-year guidance, despite uncertainty from President Donald Trump's auto tariffs
Furthermore, S of the company fell 8%, amid market uncertainty
However, While automakers have been hoping for relief on tariffs, Trump's 25% levies on imported vehicles and many auto parts remain in effect
In May, the automaker lowered its full-year guidance to include a possible $4 billion to $5 billion impact from auto tariffs, in today's market environment
Market analysis shows affirmed that guidance on Tuesday and said the estimated tariff impact remains unchanged
Furthermore, "In addition to our strong underlying operating performance, we are positioning the for a fitable, long-term future as we adapt to new trade and tax policies, and a rapidly evolving landscape," GM CEO Mary Barra said in a letter to holders
Conversely, She added that the Detroit automaker was working to "greatly reduce our tariff exposure (quite telling), amid market uncertainty
At the same time, "CFO Paul Jacobson said during an interview on "Squawk Box" on Tuesday that tariffs impacted GM's second quarter by $1. 1 billion, which is in line with GM's earlier expectations as part of the full-year impact
He added on the company's earnings call with analysts that its Korea accounts for $2 billion of the total expected tariff hit for the year
Furthermore, Mary Barra speaks onstage during WSJ's Future of Everything 2025 at The Glasshouse on May 28, 2025 in New York City
Dia Dipasupil | Getty ImagesThe company said in the spring that its guidance took into account changes the Trump administration made to tariffs, which include reimbursing automakers for some U, given current economic conditions
Additionally, Parts and reducing the "stacking" of tariffs on one another for the industry
GM said it is making solid gress toward mitigating at least 30% of its expected cost increases due to tariffs through manufacturing adjustments, targeted cost initiatives and consistent pricing, given the current landscape
It noted that the second half of the year will be more exposed to tariffs since it will have two quarters subject to Trump's tariffs, while the first six months of the year only had one quarter affected, amid market uncertainty
However, Jacobson said on CNBC's "Squawk Box" that the automaker does not expect any specific price increases related to tariffs
Here's how the company performed in the second quarter, compared with average estimates compiled by LSEG:Earnings per : $2, in this volatile climate
Additionally, 53 adjusted vs, in today's market environment
However, 44 expected Revenue: $47 (quite telling), amid market uncertainty. 12 billion vs
Meanwhile, 28 billion expectedGM's second-quarter results included net income attributable to stockholders of $1 (quite telling)
On the other hand, 9 billion, down 35. 4% from $2. 93 billion a year earlier
Read more CNBC auto newsEverything we know Tesla's robotaxi launch in AustinStellantis' Ram brand to offer industry-leading pickup truck warranty as part of turnaround planGM unveils quickest Corvette ever with ZR1X 'hypercar' going 0-60 mph in less than two secondsAdjusted earnings before interest and taxes came in at $3. 04 billion, a 31, given current economic conditions
Nevertheless, 6% decrease from $4
At the same time, 44 billion last year, but exceeding StreetAccount estimates of $2, in light of current trends
Nevertheless, 89 billion (noteworthy indeed)
The automaker reported adjusted earnings per of $2
Furthermore, 53, down 17% from $3. 06 a year earlier
However, What the data shows is s revenue for the second quarter was down 1 (which is quite significant). 8% compared with $47, in today's financial world. 97 billion a year earlier, in light of current trends
Both year-over-year declines mark the company's first since the fourth quarter of 2023, with the revenue decrease also reflecting the biggest year-over-year drop since the fourth quarter of 2021
Additionally, GM's North America margin, adjusted for earnings before interest and taxes, of 6. 1% is down 44% from 10, in today's financial world. 9% a year agoAmid the trade uncertainty, GM is trying to counter tariff risks, in today's market environment
Furthermore, Last month, the company announced it will invest $4 billion in several American plants, including moving or increasing duction of two Mexican-duced vehicles to U
The company also said last week it will move duction of a gas-powered SUV and add manufacturing of pickup trucks to its state of Michigan
Additionally, The company's full-year guidance, which it modified in May due to tariffs, includes adjusted EBIT of between $10 billion and $12. 5 billion, down from its January guidance, which did not take tariffs into account, of $13. 7 billion to $15
On the other hand, GM's yearly outlook also includes net income attributable to stockholders of $8. 25 billion to $10 billion, down from $11, considering recent developments
Nevertheless, 2 billion to $12. 5 billion earlier this year, and adjusted automotive free cash flow between $7. 5 billion and $10 billion, down from between $11 billion and $13 billion prior to the tariffs
Moreover, GM reported 974,000 vehicle sales in the second quarter, less than the 1 million estimated by StreetAccount, amid market uncertainty
However, Its electric vehicle sales totaled 46,300 for the quarter and the company said it has become the No
However, 2 EV manufacturer in the U (an important development)
Moreover, During Tuesday's earnings call with analysts, Barra said GM's focus as it relates to electric vehicles is on reaching and imving on fitability
On the other hand, Trump's new tax-and-spending bill, which he signed into law on July 4, is set to end the $7,500 tax credit for new electric vehicles and $4,000 credit for used EVs after Sept
Jacobson said he expects a rush on EVs before the Sept (fascinating analysis)
Additionally, Nevertheless, 30 expiration, given the current landscape
Furthermore, After that, he said he expects slower demand for EVs, in today's market environment. "While we anticipate headwinds to EV fitability from lower volume due to the recent removal of government incentives, we remain focused on controlling what we can," Jacobson said on the call, adding that the automaker anticipates the changes in legislation to have a minimal impact on its 2025 results
On the other hand, While GM initially set a goal to exclusively offer EVs by 2035, it has since said that consumer demand, which has been slower than expected, will dictate its EV plans
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