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GM chief executive Mary Barra walked a tightrope in a letter to shareholders Thursday that sounded upbeat — but also warned that tariffs could cost the company as much as $5 billion this year. She praised the Trump administration while highlighting the challenges GM faces in new economic headwinds from tariffs.
Barra wrote she is “ grateful to President Trump for his support of the U.S. automotive industry.” Still, none of that was enough to offset what would be a bite into GM’s profits from the tariffs.
“Incorporating the positive impact of the Administration’s actions this week, we are updating our full-year EBIT-adjusted guidance to a range of $10 billion-$12.5 billion, including a current tariff exposure of $4 billion-$5 billion,” Barra wrote.
She added that GM will continue to engage with the administration on trade and other policies as they continue to change.
“As you know, there are ongoing discussions with key trade partners that may also have an impact,” Barra wrote. “We will continue to be nimble and disciplined and update you as we know more.”
She struck optimistic notes about the future in her letter.
“GM’s business is growing and fundamentally strong as we adapt to the new trade policy environment, further strengthen our supply base, and drive EV profitability,” Barra said.
In an interview with CNN (WBD-2.74%), Barra waved off the possibility of higher prices for customers.
“We believe… pricing is going to stay at about the same level as it is,” Barra said, noting that pricing is always evolving.
“Pricing changes in our industry at least monthly, and sometimes more frequently,” she said. “We’re going to respond to the market.”
Other GM executives have been more pointed in their fears of tariff-induced economic problems.
GM earlier this week pulled its 2025 profit guidance due to uncertainty caused by the tariffs.
“Given the evolving nature of the situation, we believe the future impact of tariffs could be significant,” GM chief financial officer Paul Jacobson told reporters on a call Monday evening, according to the Wall Street Journal. The executive added that the company would provide an update once it has a clearer idea of the trade war’s impact.
GM also announced it was halting its stock buyback program, with Jacobson saying it is awaiting “more clarity” on tariff policies before buying any more stock.
The Detroit firm reported its first-quarter earnings Tuesday morning, beating expectations with adjusted EPS of $2.78 on $44.02 billion in revenue. But its stock was down a little more than 2% Tuesday morning.
—Kevin Ryan contributed to this article.