The auto industry continues to brace for the impact of whatever tariffs placed on it by the U.S. trade policy.
At General Motors, at least, that means reevaluating its financial situation.
GM announced earlier this week that it was adjusting its profit expectations due to tariffs. The company said at the time that its initial full-year financial outlook didn’t contemplate their potential impact.
On Thursday GM said it now foresees full-year adjusted earnings before interest and taxes in a range of $10 billion to $12.5 billion. The guidance includes a current tariff exposure of $4 billion to $5 billion, according to a report from The Associated Press.
GM previously predicted 2025 adjusted EBIT between $13.7 billion and $15.7 billion.
The revised forecast comes after President Donald Trump signed executive orders Tuesday to relax some of the planned 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, the AP reported.
Most economists say the tariffs — which could ultimately hit most imports — would raise prices and slow economic growth, possibly hurting auto sales despite the relief that the administration intends to offer on its previous policies.
In a letter to shareholders on Thursday, General Motors CEO Mary Barra said that the automaker looks forward to maintaining its strong dialogue with the Trump administration on trade and other evolving policies.
“As you know, there are ongoing discussions with key trade partners that may also have an impact,” she said, according to the AP report. “We will continue to be nimble and disciplined and update you as we know more.”
