General Motors reported strong financial results for the first quarter of 2025, but it plans to reassess its expectations for the full year due to uncertainty surrounding auto tariffs.
The automaker has postponed its conference call to discuss both its quarterly results and guidance until Thursday, allowing more time to evaluate potential changes to tariff policies. GM stated that its initial financial outlook for 2025 did not take into account the possible impact of tariffs. Back in January, the company projected adjusted earnings for the year to fall between $11 and $12 per share.
A report late Monday indicated that President Donald Trump may reduce automotive tariffs. According to anonymous sources, Trump could halt new duties on foreign-made cars and ease some levies on imported parts used in U.S. vehicle production.
White House press secretary Karoline Leavitt confirmed Tuesday that Trump intends to sign an executive order to relax some of the tariffs on cars and auto parts. However, Treasury Secretary Scott Bessent emphasized that the goal of the tariffs was to encourage more domestic manufacturing jobs in the auto industry. Bessent noted that Trump’s focus is on creating jobs for the future rather than preserving jobs tied to older manufacturing methods.
The ultimate effect of Trump’s broader tariff strategy on the U.S. economy and auto sales remains uncertain. Many economists believe the tariffs—designed to impact a wide range of imports—could increase prices and slow economic growth, potentially dampening auto sales despite the administration’s intent to reduce some of the existing tariff burden.
Trump was scheduled to visit Michigan, a critical state for the automotive industry, on Tuesday. Michigan has been deeply impacted by the administration’s tariffs on imported vehicles and auto parts. The state’s unemployment rate has been climbing, with a significant increase from 4.2% to 5.5% from March to April, far surpassing the national average.
Industry groups have warned the White House that further tariffs on imported auto parts could lead to higher car prices, layoffs, and even bankruptcies.
For the first quarter, GM reported earnings of $2.78 billion, or $3.35 per share, a slight decrease from the $2.98 billion, or $2.56 per share, it earned in the same period last year. Adjusted earnings, excluding one-time items, came in at $2.78 per share, which exceeded Wall Street’s forecast of $2.68 per share. Revenue for the quarter rose to $44.02 billion from $43.01 billion.
Despite these solid results, GM’s stock dropped about 2% in early trading.