President Donald Trump’s 25% tariffs on imported vehicles and parts have sent shockwaves through the U.S. auto industry.

General Motors had a more than $1 billion chunk taken out of its profits due to tariff costs, the company reported on Tuesday. GM, as well as other automakers like Stellantis, have contributed to evidence indicating American companies and consumers—not exporters—are the ones paying for tariffs.

GM reports a second-quarter operating profit of $3 billion and earnings per share of $2.53 from sales of $47.1 billion.

The impacts will be felt more broadly in many industries, and the question is when the choice becomes to preserve profits by raising prices.

GM beat Q2 expectations on Tuesday, but shares fell 8% due to tariff concerns and a decline in core earnings. I see tariff headwinds as a short-term risk only as GM maintained strong free cash flow and confirmed its FY 2025 guidance, making the sell-off a ...

Automakers might increase prices moving forward, according to a report from the intelligence firm AlixPartners.

Toyota's stock surged 8% after the Trump administration's new tariff policy was announced, putting American automakers like Ford, GM, and Tesla at a disadvantage. This could backfire on the America First policy and investors should take note.