Trump tariffs slash GM profit by $1.1B

General Motors (GM) said on Tuesday that President Donald Trump’s tariffs slashed $1.1 billion from its second-quarter operating income, shrinking net profit 35% to $1.9 billion.

The Trump administration’s 25% auto tariffs hurt GM’s core North American business, despite gains overseas. The company has kept its full-year profit outlook, but warned of deeper third-quarter impacts.

Investors reacted sharply, sending GM shares down over 8% to $48.89.

The automaker has shifted some production to the US and hopes trade deals with Mexico, Canada, and South Korea will ease pressure.

GM plans to boost US production by 300,000 vehicles by 2027 and offset 30% of the $4–5 billion tariff costs.