General Motors (GM) has reported impressive financial results for the first quarter of 2025, with revenues climbing 2.3% to reach $44 billion and adjusted earnings per share hitting $2.78, exceeding the predictions of Wall Street analysts. However, this strong performance has been overshadowed by GM's decision to withdraw its 2025 annual earnings guidance due to new U.S. tariffs on imported vehicles and auto parts, according to a report from Reuters.

These tariffs, which impose a 25% duty on non-North American car imports, are expected to significantly impact costs for automakers, potentially increasing vehicle prices by $4,000 to $10,000. They are also projected to cost U.S. automakers $108 billion this year. In response to these changes, GM has paused their $2 billion share buyback program. Additionally, the company plans to boost production of its full-size pickups at its Indiana facility by 50,000 units annually in an attempt to cushion the tariff blow.

Despite the positive earnings report, GM's stock fell by around 2% in morning trading following the announcements, as noted by AP News. This decline reflects the market's reaction to GM's reassessment of its financial guidance and the suspension of the share buyback program amid ongoing uncertainty due to evolving trade policies.