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Trump Tariffs Slash GM and Stellantis Profits, Impacting the Auto Industry
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2025-09-01
General Motors (GM) reported a significant decline in its second-quarter profits, falling over 34% compared to last year, primarily due to USD 1.1 billion in losses caused by tariffs imposed by the Trump administration. GM's net earnings dropped to USD 1.9 billion, while sales slightly increased by 7.3%. The company expects tariff-related costs to total between USD 4 billion and USD 5 billion for 2025. GM CEO Mary Barra announced plans to invest USD 4 billion in U.S. plants to increase production and shift production of key models such as pickups and SUVs back to the U.S., aiming to reduce tariff exposure.
Similarly, Stellantis, owner of brands like Chrysler, Jeep, and Dodge, revealed tariff costs of around €300 million (USD 350 million) in the first half of 2025. The tariffs have caused production halts and a 10% decline in U.S. sales for Stellantis during the second quarter. Industry experts warn these tariffs are squeezing automakers' profitability, as companies absorb costs without immediately raising vehicle prices.
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2025-09-01
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