GM Faces Financial Strain Amid U.S. Tariffs Impact

Published 22 hours agoGM

GM Faces Financial Strain Amid U.S. Tariffs Impact

General Motors has reported its first-quarter 2025 financial results, revealing a net income of $2.8 billion, down 6.6% from the previous year. The automaker exceeded analyst expectations with adjusted earnings per share of $2.78, while its revenue rose by 2.3% to hit $44 billion, marking a strong performance despite external pressures.

The company faces significant challenges due to newly imposed U.S. tariffs by President Donald Trump. As a result, GM has paused its $2 billion share buyback program and reined in its annual financial guidance. The automaker expects tariffs to impact its finances by $4 to $5 billion, revising its 2025 earnings forecast to between $10 billion and $12.5 billion, a decrease from the previous range of $13.7 billion to $15.7 billion. This uncertainty has stirred consumer action, boosting U.S. vehicle deliveries by 20% year-over-year in April.

GM has announced plans to counter the effects of the tariffs by increasing domestic production and enhancing the cost efficiency of its electric vehicles. The company is also exploring other cost-effective measures to minimize the impact. Despite these hurdles, GM's stock has shown resilience, climbing over 2% in pre-market trading after the earnings announcement, as reported by Reuters. The stock price currently holds steady at $45.3 USD.

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