Car industry Trump's tariffs cause General Motors' profits to plummet
Donald Trump's import tariffs cost the US car giant General Motors 1.1 billion dollars last quarter. As a result, profits plummeted by 35 percent year-on-year to 1.9 billion dollars (1.5 billion Swiss francs).
22.07.2025, 16:35
SDA
For the year as a whole, GM continues to expect a burden of 4 to 5 billion dollars from the tariffs imposed by the US President. The Group hopes to offset at least 30 percent of this through adjustments in production and cost reductions.
Nevertheless, according to GM, customers in North America must be prepared for price increases of 0.5 to 1 percent. GM announced in June that it would be relocating part of its production from Mexico to the USA.
Burden from electric cars
GM's profit exceeded even lower market expectations. This was also helped by business in China, where the Group generated a profit for the second quarter in a row. GM also reduced fixed costs by 800 million dollars. A write-down on electric car inventories, on the other hand, resulted in a charge of 600 million dollars.
GM sold 974,000 vehicles in the second quarter, almost 25,000 fewer than analysts had expected. Although sales fell by 1.8 percent year-on-year to just over 47 billion dollars, this was above expectations.
