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GM said earnings in the second quarter reflect a more than $1 billion hit from President Donald Trump's tariffs.
The American auto manufacturer’s net income fell by 35%, the company said in its second quarter earnings call.
GM CEO Mary Barra hasn’t ruled out raising car prices, however, and has said the company will stay competitive.
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Morgan Stanley Bluntly Asks GM CEO: How Does It Plan To Profit From EVs When Tesla Struggles?
In light of these headwinds, Morgan Stanley analyst Adam Jonas asked GM boss Mary Barra how GM can expect to build and sell its EVs profitably, without the company following Tesla with massive AI and autonomy investments.
General Motors and other U.S. companies give updates on how much President Trump’s tariffs are impacting them.
The American automaker reported that tariffs cost them $1.1 billion and reduced the company's profit margin from 9% to 6.1%.
The president's trade policies are wreaking havoc on the American auto industry. Another automaker, Stellantis, also reported losses this week.
GM reports a second-quarter operating profit of $3 billion and earnings per share of $2.53 from sales of $47.1 billion.