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U.S. automaker General Motors (GM) said Thursday that President Trump’s tariffs could cut as much as $5 billion from profits this year.
Mary Barra, GM CEO and Chairman, said in a letter to investors that her company “has been discussed with the president and his team since taking office.”
“They invested their time to understand the ways we need to succeed in this capital-intensive and competitive global industry, how we work together to grow U.S. manufacturing, and the importance of companies like GM to communities across the country,” she added.
In the letter, Barra also said that the company expects interest and taxes to be $10 billion and $12.5 billion this year, taking into account the “positive impact of government actions this week”, Balla also said that the company expects $4 billion to $5 billion in losses due to the president’s tariffs.
On Tuesday, the president signed an execution order that eliminated 25% tariffs on imported cars and auto parts, which will take effect on Saturday. The administration will take a double blow through Trump’s automatic tariffs and previous tariffs on foreign metals to mitigate the double blow to foreign auto parts, while the U.S. collects the highest product.
Automakers will also be allowed to require a 15% price shift within the first year of the tariff and a 10% offset in the second year.
“We look forward to a strong dialogue with trade and other policies as it continues to evolve. As you know, ongoing discussions with major trading partners may also have an impact. We will continue to be agile, disciplined, and as we know more,” Barra said in the letter.