General Motors (GM) faces significant financial challenges due to the Trump administration's tariffs on imported cars and auto parts, estimating costs between $4 billion and $5 billion for the year. CEO Mary Barra detailed these impacts in a letter to shareholders, noting a reduction in the company's earnings forecast from the previous year. GM, while no longer the global leader it once was, remains the largest American automaker, with substantial operations in the US, Mexico, Canada, and South Korea. The tariffs are affecting GM's operations by imposing a 25% levy on imported vehicles and parts, necessitating a recalibration of their financial outlook. Despite these challenges, Barra expressed hope for continued dialogue with the administration to mitigate the potential impact of these policies on GM's operations and workforce, which supports over a million US jobs across various sectors.

General Motors anticipates tariffs will cost the company up to $5 billion this year, prompting a reduction in its earnings projections and creating economic uncertainty.

CEO Mary Barra communicated these financial impacts in a delayed letter to shareholders, which aligned with lower first-quarter earnings and awaited tariff changes.

The auto industry has been a focal point for the Trump administration's tariffs, with GM facing levies on imports from Mexico, Canada, and South Korea, affecting their production and export activities.

Despite being the largest American automaker, GM's profitability is now threatened, with earnings before interest and taxes expected to drop significantly from $14.9 billion last year to between $10 billion and $12.5 billion.

GM's US-built vehicles rely on imported parts, comprising an average of 54% of their content, and starting Saturday, many of these components will face a 25% tariff.

The tariffs could potentially affect GM's workforce of 1 million US workers, including employees, suppliers, and dealers, spread across 50 manufacturing plants and parts facilities in 19 states.

Barra remains optimistic about discussions with the Trump administration and other trade partners, indicating potential adjustments to trade policies that could alleviate some of the tariff burdens.