General Motors (GM) announced impressive financial results for the first quarter on Tuesday, but revealed plans to reevaluate its 2025 forecasts in light of potential changes to auto tariffs. The automaker has postponed its conference call to discuss quarterly earnings and future guidance until Thursday to thoroughly examine the implications of possible tariff shifts.
Initially, GM’s annual financial outlook did not factor in the possible effects of tariffs. Earlier in January, the company projected its adjusted earnings for 2025 would range between $11 and $12 per share. Reports emerged late Monday from The Wall Street Journal suggesting that President Donald Trump may be considering a reduction in automotive tariffs. According to unidentified sources, Trump might end additional duties on foreign-manufactured cars and reduce some tariffs on foreign auto parts used within the U.S.
White House press secretary Karoline Leavitt confirmed on Tuesday that Trump intends to sign an executive order easing some of these tariffs on vehicles and parts. However, Treasury Secretary Scott Bessent emphasized that the administration’s aim remains to bolster domestic manufacturing jobs. Bessent reiterated that Trump is focused on nurturing “jobs of the future, not of the past.”
It remains uncertain how Trump’s expansive tariff policies will influence the U.S. economy and automotive sales. Economists widely agree that the tariffs, potentially affecting most imports, could drive up prices and slow economic progression, potentially impacting auto sales despite the anticipated tariff relief.
President Trump is scheduled to hold a rally in Michigan, a crucial hub for the U.S. auto industry, on Tuesday. The state has been particularly affected by stringent trade tariffs and Trump’s confrontational stance towards Canada. The President will visit Selfridge Air National Guard Base for an announcement with Democratic Michigan Governor Gretchen Whitmer before addressing a rally at Macomb Community College, north of Detroit.
Having played a pivotal role in Trump’s electoral victory by switching from Democratic to Republican support, Michigan has suffered extensively from tariffs on imported vehicles and parts. Its unemployment rate has climbed for three consecutive months, jumping 1.3% since March to reach 5.5%, surpassing the national average of 4.2%.
Various industry groups have urged the administration to abandon plans for tariffs on imported auto components, cautioning that such a move could drive up car prices and possibly lead to layoffs and bankruptcies.
In terms of tangible performance, General Motors reported earnings of $2.78 billion, or $3.35 per share, for the quarter ending March 31. This compares to $2.98 billion, or $2.56 per share, from the same period the previous year. Excluding one-time charges and gains, GM earned $2.78 per share, exceeding the Wall Street expectation of $2.68 per share gathered from FactSet data.
The company’s revenue increased to $44.02 billion from $43.01 billion, although GM’s stock price saw a roughly 2% decline during morning trading.