Tariffs hit GM’s operating income by $1.1 billion in the second quarter. The company’s net income of $1.9 billion was down from $2.9 billion in the second quarter of 2024. GM said few of its tariff “mitigation” efforts, such as making more vehicles at its U.S. factories, were fully implemented.

The president's trade policies are wreaking havoc on the American auto industry. Another automaker, Stellantis, also reported losses this week.

General Motors' latest earnings report showed that President Trump's new tariffs on imported cars may have impacted the company's profits. Laila Maidan, a reporter for MarketWatch, joins with more details.

GM second quarter 2025 earnings are headlined by $1.9 billion in net income (profit) on $47 billion in revenue. See complete General Motors Q2 2025 earnings.

GM CEO Mary Barra hasn’t ruled out raising car prices, however, and has said the company will stay competitive.

The impacts will be felt more broadly in many industries, and the question is when the choice becomes to preserve profits by raising prices.

General Motors' second-quarter earnings took a $1.1-billion hit from tariffs, but the automaker still beat analyst expectations for the period on Tuesday, supported by strong sales of its core gasoline trucks and SUVs.

General Motors’ Q2 profit fell 32% to $3bn due to a $1.1bn tariff hit from Trump’s trade policies, with the carmaker warning of deeper losses in the next quarter.

As the August 1st tariff deadline approaches, President Trump said on social media that the U.S. and the Philippines have reached a trade deal. It comes as the impact of tariffs already in place are becoming more clear as automakers report quarterly earnings.