GM Q2 Profit Falls 35% on Tariffs but Maintains 2025 Outlook

General Motors reported a 35% decline in second-quarter profits due to a $1.1 billion net impact from U.S. tariffs, but the company still exceeded analyst expectations and confirmed its full-year financial outlook. CEO Mary Barra emphasized GM's efforts to reduce tariff exposure through a $4 billion investment in U.S. assembly plants, manufacturing adjustments, targeted cost initiatives, and pricing strategies, aiming to mitigate at least 30% of the anticipated $4 billion to $5 billion tariff impact for the year. Despite a drop in revenue to $47.1 billion and net income to $1.9 billion, GM's earnings before interest and taxes outperformed forecasts, and the company is targeting full-year operating income between $10 billion and $12.5 billion. Electric vehicle sales rose in the second quarter but overall U.S. EV growth has slowed, partly due to the impending expiration of the $7,500 EV tax credit for many models under the Inflation Reduction Act. Barra highlighted the company's focus on profitable long-term electric vehicle production, flexible manufacturing, and leveraging domestic battery investments amid changing market dynamics. GM maintains a strong market position and is navigating cost pressures and trade policy shifts while prioritizing customer needs and brand strength.