General Motors has withdrawn its profit forecast for 2025 due to uncertainties stemming from President Trump's recent trade policies, particularly the imposition of a 25 percent tariff on imported cars and a planned 25 percent duty on imported parts. This decision follows a 7 percent decrease in first-quarter profits compared to the previous year, attributed largely to a 14 percent drop in North American earnings. The tariffs, which also apply to imported steel and aluminum, significantly raise costs for GM, as approximately half of their U.S. sales are of cars manufactured abroad. Despite this, GM remains in discussions with the Trump administration to gain clarity on these tariffs and their potential impact. The company has also announced plans to increase pickup truck production in Indiana to mitigate some effects of reduced truck imports from Canada and Mexico.

General Motors has decided to retract its previous profit forecast for 2025 due to the uncertainty caused by new tariffs imposed by President Trump, including a 25 percent tariff on imported cars and an impending similar duty on imported parts.

In the first quarter of the year, GM's profit fell by 7 percent compared to the previous year, with a notable 14 percent decline in earnings before interest and taxes in North America, which is the company's primary profit center.

The tariffs, which significantly raise the cost of imported steel and aluminum used in car manufacturing, are part of broader trade policies that also include increased tariffs on China and other countries.

GM's Chief Financial Officer, Paul Jacobson, emphasized that the impact of the tariffs could be substantial, leading to the company's suspension of profit guidance until more clarity is obtained from ongoing discussions with the administration.

While the tariffs had minimal impact on GM's first-quarter financials, as they only took effect in April, the company is proactively increasing pickup truck production in Indiana to reduce reliance on imports from Canada and Mexico.

GM's Chief Executive, Mary T. Barra, postponed a scheduled discussion of the company's earnings results in anticipation of further announcements from the White House regarding auto tariffs.

The company is seeking more information and wishes to avoid public negotiation, as stated by Paul Jacobson, who also noted that GM's business fundamentals remain strong despite these challenges.