General Motors reported a $1.1 billion impact from tariffs over three months, lowering its profit margin from 9% to 6.1%. CFO Paul Jacobson indicated efforts to offset 30% of the projected $4 to $5 billion tariff impact in 2025 through manufacturing changes and cost initiatives. The unpredictable nature of U.S. tariff policy continues to pose challenges. GM still imports vehicles from Korea despite high tariffs, as they are in demand. Following the earnings report, GM stock fell 6%, signaling investor discontent with the handling of tariff costs.
Tariffs cost General Motors approximately $1.1 billion over three months, reducing its profit margin from 9% to 6.1%, falling short of target profitability.
CFO Paul Jacobson stated GM hopes to offset at least 30% of the $4 to $5 billion full-year 2025 tariff impact through changes in manufacturing and costs.
Despite a 25% tariff, GM continues to import vehicles made in Korea, as they remain in high demand and form part of their most affordable models.
GM stock dropped 6% after earnings revealed, indicating Wall Street's displeasure with the strategy of absorbing tariffs as a hit to profits.
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