GM’s expecting an up to $5 billion tariff hit this year, but its CEO says prices should stay “about the same”
GM shares shed all premarket gains on Thursday morning after the company issued its full-year guidance and tariff cost estimates following a delay.
The Chevrolet parent company said it expects its 2025 earnings before interest and taxes to be between $10 billion and $12.5 billion, down from earlier guidance of up to $15.7 billion.
Despite some recent relief in the form of potential tariff reimbursement, GM said it anticipates a 2025 tariff cost of between $4 billion and $5 billion. Unlike rivals like Tesla that are more set up for relief, 46% of GM’s US sales are imports and its vehicles contain just 54% US content on average, per estimates.
That’s far short of the 85% threshold that will essentially grant automakers full exemption from the 25% auto parts tariff taking effect Saturday.
Despite those higher expected costs, CEO Mary Barra told CNN on Thursday that the company expects pricing to “stay at about the same level as it is.” Experts have estimated tariffs will hike vehicle costs by more than 11% on average.
Despite some recent relief in the form of potential tariff reimbursement, GM said it anticipates a 2025 tariff cost of between $4 billion and $5 billion. Unlike rivals like Tesla that are more set up for relief, 46% of GM’s US sales are imports and its vehicles contain just 54% US content on average, per estimates.
That’s far short of the 85% threshold that will essentially grant automakers full exemption from the 25% auto parts tariff taking effect Saturday.
Despite those higher expected costs, CEO Mary Barra told CNN on Thursday that the company expects pricing to “stay at about the same level as it is.” Experts have estimated tariffs will hike vehicle costs by more than 11% on average.
