A major car maker has announced bad news in the billions of dollars.
General Motors believes the tariffs “will cost General Motors between $4 billion and $5 billion this year,” according to CNN.
But that doesn’t mean that car buyers will feel the sting of it.
“We believe …pricing is going to stay at about the same level as it is,” CEO Mary Barra told CNN’s Erin Burnett on May 1, 2025, although she added, “Pricing changes in our industry at least monthly, and sometimes more frequently. We’re going to respond to the market.”
The “lower profit target” was announced in a letter to shareholders as the company, and many others, try to impart realistic guidance on tariffs impact as they grapple with a volatile landscape, CNN reported.
According to CNN, GM is “the largest American automaker” with sales in the United States of 2.7 million cars and trucks, which has kept the company “very profitable,” with “record net income of nearly $12 billion in 2024, excluding special items.”
In addition, GM affects “1 million US workers,” who work as “employees, suppliers or dealers,” CNN reported.
General Motors manufactures some of the most iconic American cars and trucks, including Chevrolet, Buick, GMC and Cadillac, according to its website.
Bloomberg reported that GM is freezing a “share buyback” due to the tariffs.
Barra told shareholders that the company continues to have an open dialogue on tariffs.
“There are ongoing discussions with key trade partners that may also have an impact,” she wrote, according to Reuters. Yet GM cut its profit forecast, Reuters confirmed, due to the tariff concerns.
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