By Kalea Hall
DETROIT (Reuters) -General Motors has pulled its forecast for the year, reflecting the uncertain effects of U.S. President Donald Trump’s global trade war on the industry, even as it reported strong quarterly results.
The Detroit automaker forecast in January net income between $11.2 billion to $12.5 billion for 2025, which did not include the impact of automotive tariffs.
Trump’s vacillating tariff policy has caused uncertainty in the automotive sector, which could be particularly hard hit, with analysts estimating new car prices could rise by thousands of dollars.
“We believe the future impact of tariffs could be significant,” GM Chief Financial Officer Paul Jacobson said on a call with media. “We’re telling folks not to rely on the prior guidance, and we’ll update when we have more information around tariffs.”
In the first quarter, GM reported revenue rose 2.3% to $44 billion boosted by customers rushing to buy before prices jumped, surpassing analyst expectations of $43 billion. Adjusted earnings per share of $2.78 also exceeded analyst forecasts of $2.74 per share. Net income fell 6.6% to $2.8 billion.
GM also said that an analyst call to discuss these results and its updated 2025 full-year guidance, originally scheduled for Tuesday, had been moved to Thursday, May 1 following recent reports “regarding updates to trade policy”.
Trump’s 25% auto tariffs imposed in early April are projected to increase costs by about $108 billion for automakers in the U.S. this year, according to a recent study from the Center for Automotive Research.
The Trump administration will reduce the effects of auto tariffs on Tuesday by alleviating some of the levies on foreign parts in U.S.-made vehicles and keeping tariffs from stacking on imported vehicles.
Numerous blue-chip companies have pulled their guidance for the year in response to tariff uncertainty.
Consumer confidence has weakened dramatically since mid-February, when Trump ramped up his threats of levies on most foreign imports. Tesla last week did not give guidance, promising to revisit the issue in its next quarterly results.
In China, where GM is restructuring its business, the automaker saw some relief with equity income at $45 million, up from a first-quarter 2024 loss of $106 million.
GM’s positive first-quarter results come after the automaker reported a rise of about 17% in U.S. auto sales in the first quarter with high demand for trucks.
The tariffs, at least in the short term, have seemed to push some customers to make purchases with automakers such as Ford Motor and Stellantis, maker of Ram trucks and Jeeps, offering deeper discounts. New vehicle sales increased month over month and year over year in March, according to Cox Automotive.
“The industry undoubtedly benefited from some pull-ahead demand from customers purchasing vehicles ahead of potential tariffs, particularly in March,” Jacobson said on the media call. “However, this strong demand environment has continued into April, where we have seen U.S. deliveries up more than 20% versus last year.”
GM has moved to increase truck output at an Indiana plant, as first reported by Reuters. GM will discuss other measures to mitigate the effects of tariffs on a Thursday morning analyst call.
“We haven’t made any specific decisions about any major strategic changes until we get more clarity,” he said of the tariffs, adding GM is “focused on actions that we can implement quickly, efficiently and with low near-term costs.”
Barclays in mid-April cut its 2025 GM earnings before interest and taxes estimates by 40% based on lower volume and the gross tariff impact of about $9.5 billion, since the automaker makes just under half of the vehicles it sells in the U.S. outside of the country.
GM shares have lost 12% so far this year, trailing its primary rival Ford, which has gained about 3% in 2025.
(Reporting by Kalea Hall; Editing by Saad Sayeed)
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