By John Meyer, consultant in financial affairs – Eurasia Business News, July 22, 2025. Article no. 1646

General Motors (GM) reported a 35% decline in net income for the second quarter of 2025, with profit falling to $3 billion, primarily due to a $1.1 billion hit from tariffs imposed under the Trump administration. Despite strong sales gains, including a 7% increase in U.S. market sales and a return to modest profitability in China, these tariffs significantly weighed on earnings. Adjusted earnings per share came in at $2.53, beating analyst expectations, but down from $3.06 a year earlier.

GM anticipates the tariff impact will worsen in the third quarter, with total tariff-related costs expected to range between $4 billion and $5 billion for the full year. The company is taking steps to mitigate about 30% of this burden by investing $4 billion to shift some production from Mexico to U.S. plants and implementing operational adjustments. GM reaffirmed its full-year profit forecast despite these challenges. Following the earnings announcement, GM’s shares fell around 3% in premarket trading.

Trump tariffs have taken a substantial $1.1 billion bite out of GM’s quarterly profits, contributing to a notable profit shrinkage, though the company’s core business and outlook remain solid.

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© Copyright 2025 – Eurasia Business News. Article no. 1646.