GM pulls forecast on tariff uncertainty

Detroit — General Motors has withdrawn its forecast for the year, reflecting the uncertain effects of US President Donald Trump’s global trade war on the industry, even as it reported strong quarterly results.

The automaker in January forecast net income of $11.2bn-$12.5bn for 2025, which did not include the impact of automotive tariffs.

Trump’s vacillating tariff policy has caused uncertainty in the automotive sector, which could be particularly hard hit, with analysts estimating new car prices could rise by thousands of dollars.

“We believe the future impact of tariffs could be significant,” GM CFO Paul Jacobson said on a call with media. “We’re telling folks not to rely on the prior guidance, and we’ll update when we have more information around tariffs.”

In the first quarter, GM reported revenue rose 2.3% to $44bn, boosted by customers rushing to buy before prices jumped and surpassing analysts’ expectations of $43bn. Adjusted earnings per share of $2.78 also exceeded forecasts of $2.74, though net income fell 6.6% to $2.8bn.

GM also said an analyst call to discuss the results and its updated 2025 full-year guidance, originally scheduled for later on Tuesday, had been moved to May 1 after recent reports “regarding updates to trade policy”.

Trump’s 25% vehicle tariffs imposed in early April are projected to increase costs by about $108bn for manufacturers in the US this year, according to a recent study from the Michigan-based Center for Automotive Research.

The Trump administration will reduce the effects of vehicle tariffs on Tuesday by alleviating some of the levies on foreign parts in US-made vehicles and keeping tariffs from stacking on imported vehicles.

Numerous blue-chip companies have withdrawn their guidance for the year in response to tariff uncertainty.

Consumer confidence has weakened sharply since mid-February, when Trump ramped up his threats of levies on most imports. Tesla did not give guidance last week, promising to revisit the issue in its next quarterly results.

In China, where GM is restructuring, the automaker saw some relief with equity income at $45m, up from loss of $106m in the first quarter a year earlier.

GM’s positive first-quarter results come after the automaker reported a rise of about 17% in US sales in the first quarter with high demand for trucks.

The tariffs, at least in the short term, have seemed to push some customers to buy vehicles from Ford Motor and Stellantis, the maker of Ram trucks and Jeeps, which are offering deeper discounts. New vehicle sales increased month on month and year over on in March, according to Cox Automotive.

“The industry undoubtedly benefited from some pull-ahead demand from customers buying vehicles before potential tariffs, particularly in March,” Jacobson said on the media call. “However, this strong demand environment has continued into April, where we have seen US deliveries up more than 20% versus last year.”

GM has moved to increase truck output at an Indiana plant and will discuss other measures to mitigate the effects of tariffs with analysts on Thursday’s call.

“We haven’t made any specific decisions about any major strategic changes until we get more clarity,” Jacobson said of the tariffs, adding GM is “focused on actions that we can implement quickly, efficiently and with low near-term costs”.

Earlier this month Barclays cut its 2025 GM earnings before interest and taxes estimates by 40% based on lower volumes and the gross tariff impact of about $9.5bn, since the automaker makes just under half of the vehicles that it sells in the US outside the country.

GM shares have lost 12% so far this year, trailing its primary rival Ford, which has gained about 3%.

Reuters