A quarter in sharp decline
General Motors saw its net profits fall 35% in the second quarter of 2025, reaching CA$2.6 billion. US tariffs have cost the company CA$1.5 billion since they were implemented under the Trump administration. Global revenue fell 1.8% to CA$64.6 billion, and adjusted earnings before interest and taxes (EBIT) slipped 32% to CA$4.17 billion. In North America, its most lucrative market, GM experienced a 46% decline in pre-tax profits, generating $3.3 billion on revenues of $54.2 billion.
Tariffs: A Very Real Burden
GM currently pays 25% duties on several popular models, including full-size pickup trucks manufactured in Mexico and Canada, as well as the Chevrolet Trax and Buick Envista from South Korea.
Even vehicles that are eligible under the Canada–United States–Mexico Agreement (CUSMA) are taxed only on the non-U.S. content portion. According to Chief Financial Officer Paul Jacobson, tariffs are "a major issue." He said the automaker is working to mitigate about 30% of the tax impact through production adjustments and cost cuts.
Forecasts are being maintained despite everything.
Despite financial pressure, GM is maintaining its full-year forecasts, targeting adjusted EBIT of CA$13.7 billion to CA$17.1 billion and net income of CA$11.2 billion to CA$13.8 billion. These figures are down from initial 2025 estimates. Following the announcement, GM's stock fell 2.4% in pre-market trading. CEO Mary Barra remains optimistic, stating that the current strategy, combined with better alignment between emissions standards and actual demand, will strengthen GM's competitive position.
Production strategies are in place to mitigate the impact.
To counter the effects of tariffs, GM plans to invest $5.5 billion in three U.S. plants. This includes adding the Chevrolet Equinox in Kansas City and transferring the Chevrolet Blazer from Mexico to Tennessee. These decisions aim to reduce dependence on tariffed imports. Despite the pressure, GM will not raise its prices due to tariffs. The average transaction price exceeded $70,000 in the second quarter, and incentives remained two points below the industry average.
Mixed results internationally
In China, GM generated net income of CA$97 million, a significant improvement from a loss of CA$143 million last year. The automaker is restructuring its operations with its partner SAIC and reporting a second consecutive increase in sales, largely thanks to its range of electrified vehicles.