MarcusWilliams
Published 30 July 2025 – 10:37Modified 30 July 2025 – 13:44
2 min
GM’s CFO Paul Jacobson said the carmaker was making solid progress to mitigate at least 30% of tariff impact on income
GM has reported that tariffs on imported vehicles and automotive parts have cost it $1.1 billion in the second quarter of this year, a major contributor to its 21% drop in net income over the quarter.
By the end of the year GM expects the US tariffs brought in by Donald Trump to have cost it between $4-5 billion. GM said it expects Q3 net impact to be higher than Q2 because of the timing of indirect tariff costs.
In its Q2 earnings presentation GM’s CFO Paul Jacobson said the carmaker was making solid progress to mitigate at least 30% of tariff impact on income through “manufacturing adjustments, targeted cost initiatives and consistent pricing”.
Investment to reduce tariff exposure
In last week’s letter to shareholders GM’s chair and CEO Mary Barra said that the carmaker is “positioning the business for a profitable, long-term future as [it adapts] to new trade and tax policies, and a rapidly evolving tech landscape”. Barra also said that a planned investment of $4 billion in US assembly will “greatly reduce GM’s tariff exposure”.
Full Story: HERE
