GM Profit Down 35%, EV Sales Double Amid Tariffs

General Motors reported a 35% year-over-year decline in second-quarter 2025 net income to $1.89 billion, mainly due to $1.1 billion in costs from U.S. tariffs imposed by President Donald Trump. Despite the profit drop, GM exceeded Wall Street expectations for both adjusted earnings and revenue and reaffirmed its full-year financial outlook, which had been revised downward in May in anticipation of up to $5 billion in tariff-related costs. Electric vehicle sales more than doubled year-over-year, helping GM gain market share and maintain leadership in U.S. full-size truck and SUV segments. CEO Mary Barra announced a $4 billion investment in U.S. manufacturing to expand capacity and reduce reliance on imports. The company also showed signs of sales recovery in China and outperformed broader industry sales growth. GM warned that tariff impacts could worsen in future quarters but believes its cost discipline and expanding EV lineup position it for long-term profitability.