GM Reports $1.1B Q2 Trump Tariff Costs, Profit Falls 35%

General Motors reported a significant decline in second-quarter profits due to a $1.1 billion hit from U.S. tariffs, with net income falling by approximately 32-35% year-over-year. The company maintained its forecast that tariffs will cost between $4 billion and $5 billion for the full year, with the impact expected to worsen in the third quarter. Despite the tariff headwinds, GM managed to beat analyst expectations for adjusted profits by leveraging strong sales and pricing of trucks and SUVs in North America. The company is investing $4 billion in U.S. assembly plants to reduce tariff exposure and meet domestic demand as it shifts focus from electric vehicles back to combustion-engine trucks and SUVs. GM has also pulled and later reinstated its annual guidance, now projecting an annual operating income between $10 billion and $12.5 billion. The automaker's shares fell following the report, as investors reacted to the ongoing uncertainty and strategic pivots driven by trade policy changes.