In This Story
General Motors (GM-0.65%) is pulling its 2025 profit guidance due to uncertainty caused by President Donald Trumps’ 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 what’s going on.
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.
In a rare move that underscores the uncertainty in the auto industry and beyond, GM further announced it would delay its earnings call originally scheduled for Tuesday until Thursday.
The White House said Tuesday that Trump will sign an executive order regarding auto tariffs later in the day, ahead of a scheduled rally in Michigan. The current tariffs of 25% on imported vehicles will continue, but the order will prevent other duties, such as a 25% tariff on steel and aluminum imports, from “stacking” on top of them, according to NBC News.
Trump is also expected to announce reimbursements on tariffs for auto parts for up to 3.75% of a vehicle’s first-year value on Tuesday, according to the Journal. The relief has been welcomed by the auto industry, but analysts have warned the shifting policy could still drive up prices and snarl supply chains.
Last week, six top automotive industry policy groups lobbied the Trump administration against implementing the upcoming tariffs on auto parts, saying they could jeopardize production and drive up prices.
—Catherine Baab contributed to this article.