GM cuts 2025 profit forecast as expects up to $5 billion impact tariff hit

By Kalea Hall

DETROIT (Reuters) - General Motors (NYSE:GM) 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. 

"There are ongoing discussions with key trade partners that may also have an impact," Barra said. 

The Detroit automaker released the forecast two days after pulling a previous one issued in January that did not take into account the automotive tariffs, and after the Trump administration made changes to them.

The automaker expects an annual adjusted core profit of between $10 billion and $12.5 billion, including a current tariff exposure of between $4 billion and $5 billion. 

GM’s previous guidance for earnings before interest and taxes was between $13.7 billion and $15.7 billion.

It expects to earn an annual net income of between $8.2 billion and $10.1 billion, down its from prior range of $11.2 billion and $12.5 billion.

GM anticipates 2025 full-year capital spending will be between $10 billion and $11 billion.

In an interview with CNBC Thursday morning, Barra said the automaker expected to make further announcements on plans to increase U.S. production.

"We are making a commitment that we are going to bring more production back to this country to build on what we already have," Barra said. 

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Reuters broke the news that GM will increase light-duty truck production at its Fort Wayne, Indiana, assembly plant.

Barra also said the company is "assuming a pricing environment that’s similar to what it is today," even though industry estimates find new vehicle prices could increase by thousands of dollars under tariffs.

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