GM Q2 Earnings Take US$1.1B Hit From Tariffs

General Motors’ second-quarter earnings took a US$1.1 billion hit from tariffs.

However, the automaker still beat analyst expectations for the period, supported by strong sales of its core gasoline trucks and SUVs.

The largest US automaker by sales said it expects the tariff impact to worsen in the third quarter and stuck to a previous estimate that trade headwinds threaten to hit the bottom line by US$4 to US$5 billion.

GM said it could take steps to mitigate at least 30 per cent of that impact.

Shares fell about 6 per cent in early trading.

The automaker’s revenue in the quarter ended June 30 fell nearly 2 per cent to about US$47 billion from a year ago.

Its quarterly adjusted earnings per share fell to US$2.53 compared with US$3.06 a year earlier.

According to data compiled by LSEG, analysts on average expected adjusted profit of US$2.44 per share.

Its adjusted earnings before interest and taxes fell 32 per cent to US$3 billion.

GM was among corporations that revised annual guidance due to the impact from U.S. President Donald Trump’s tariffs, lowering it to an annual adjusted core profit of between US$10 billion and US$12.5 billion.

The company on Tuesday stood by that forecast.