GM Raises Profit Forecast Amid Shifting Tariff Landscape

General Motors has announced an upward revision of its financial projections for the year, citing improved tariff conditions under the Trump administration. The automotive giant now anticipates adjusted core profits between $12 billion and $13 billion, a significant increase from previous estimates of $10 billion to $12.5 billion.
The Detroit-based manufacturer has also reduced its expected tariff impact to $3.5 billion to $4.5 billion, down from the earlier projection of $4 billion to $5 billion. This adjustment comes as the company navigates a complex landscape of trade policies and electric vehicle market challenges.
Despite these positive revisions, GM faces headwinds in the electric vehicle sector. The company recorded a substantial $1.6 billion charge related to changes in its EV strategy, reflecting the challenging market conditions following the expiration of a $7,500 tax credit for battery-powered vehicles in late September.
CEO Mary Barra acknowledged the company’s strategic pivot, stating that swift action to address overcapacity should reduce EV losses in 2026 and beyond. The company’s quarterly revenue showed a slight decline to $48.6 billion, but overall US car sales remained robust with a 6% increase in the third quarter.
GM plans to offset approximately 35% of its anticipated tariff costs through various mitigation strategies. The company benefits from a new executive order that provides credits equal to 3.75% of the retail price for US-assembled vehicles through 2030, helping to offset import tariffs on parts.