The Trump administration’s tariffs on imported cars and auto parts will cost General Motors between $4 billion and $5 billion this year, as the nation’s largest automaker slashed its earnings projections.

GM chief executive Mary Barra walked a tightrope in a letter to shareholders Thursday that sounded upbeat — but also warned that tariffs could cost the company as much as $5 billion this year. She praised the Trump administration while highlighting the challenges GM faces in new economic headwinds from tariffs.

Just two days after suspending earnings guidance, General Motors lowered its full-year outlook for 2025 as it gauges the impact of President Donald Trump’s levies. The numbers: GM said it expects EBIT to fall to between US$10-US$12.

General Motors cut its 2025 profit forecast on Thursday after receiving some clarity and a reprieve from the White House this week on automotive tariffs. CEO Mary Barra told shareholders in a letter that the company would maintain dialogue with the Trump administration on trade and other policies as they evolve.

GM’s updated guidance comes two days after the automaker reported quarterly earnings, in which profit and revenue topped expectations.

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