General Motors Updates 2025 Guidance Amidst Tariff Concerns

General Motors is lowering its profit expectations for the year as it braces for a potential impact from auto tariffs of up to $5 billion in 2025. The company announced that it was reassessing its expectations due to tariffs, stating that its initial full-year financial outlook did not contemplate their potential impact.

On Thursday, GM said it now foresees full-year adjusted earnings before interest and taxes (EBIT) in a range of $10 billion to $12.5 billion, including a current tariff exposure of $4 billion to $5 billion.

The revised forecast comes after President Donald Trump signed executive orders to relax some of his 25% tariffs on automobiles and auto parts. Automakers and independent analyses have indicated that the tariffs could raise prices, reduce sales, and make U.S. production less competitive worldwide.

“As you know, there are ongoing discussions with key trade partners that may also have an impact,” said General Motors CEO Mary Barra in a letter to shareholders. “We will continue to be nimble and disciplined and update you as we know more.”

GM previously predicted 2025 adjusted EBIT between $13.7 billion and $15.7 billion.

Shares of GM climbed over 2% before the opening bell.