GM reports a $1.1 billion earnings hit due to tariffs, causing a 35.4% drop in net profit.

General Motors (GM) reported a $1.1 billion hit to earnings in the second quarter of 2025 due to tariffs, leading to a 35.4% drop in net profit to $1.89 billion. Revenue fell 1.8% to $47.12 billion. GM expects tariffs to cost $4-5 billion this year and plans to mitigate 30% of the impact through adjustments and investments in U.S. plants. Despite the tariffs, GM saw a 7% rise in U.S. sales and a small profit in China. Other automakers like Stellantis also reported tariff-related losses, with an average effective tariff rate of 20.6% in the U.S.