GM falls victim to Trump’s metals tariffs, cutting its profit forecast this year
Southfield — General Motors (GM) has become the highest-profile American company to fall victim to US President Donald Trump’s trade wars, cutting its profit forecast this year on surging prices for steel and aluminium. Adjusted earnings will drop to about $6 a share, down from a previous projection for as much as $6.50 a share, the Detroit-based company said on Wednesday. Raw material costs probably will be a $1bn headwind this year — roughly double GM’s previous expectation — while the Argentine peso and Brazilian real are likely to drag on results through the remainder of 2018. The car maker’s shares plunged at the open of regular trading. The hit to GM’s profit underscores the risk that Trump’s policies pose to vehicle makers. While the US president is moving to weaken fuel economy mandates, his tariffs on steel and aluminium — and potentially on imported cars — are undercutting what was shaping up to be a near-record year for an iconic American company that weeks ago was riding...
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