US Edition
GM’s Latest Tariff Hit: $1.1 Billion
UNITED STATES, JUL 22 – General Motors absorbed a $1.1 billion tariff loss but exceeded profit expectations due to strong sales of gasoline trucks and SUVs, while lowering its annual earnings forecast.
- Early in the session, US equity futures traded muted, with S&P 500 E-mini futures down 6 points, Nasdaq 100 E-mini futures fell 43.25 points, and Dow E-mini futures sank 86 points.
- Ahead of the August 1 deadline, investors eye corporate earnings, with data compiled by LSEG expecting a 6.7% jump in second-quarter profits amid trade uncertainties.
- In its earnings release, GM said tariffs caused a $1.1 billion hit, leading to a 35% profit decline and a 32% drop in core profit to $3 billion, while U.S. sales rose 7%.
- GM shares slid, lowered its annual profit forecast to $10 billion–$12.5 billion and plans to mitigate at least 30% of tariff expenses through U.S. production shifts.
- Ahead of the rate decision, traders said, while the CME FedWatch tool suggests a 56.3% chance of a Fed rate cut in September.
108 Articles
108 Articles
Another automaker has reported significant impacts from tariffs on cars and auto parts imported into the United States. And this time, it's the one that could be described as America's "family silverware." General Motors was hit with tariffs of $1.1 billion in the second quarter, or roughly 27.1 billion crowns.
How hard tariffs are hitting auto biz
Ontario’s small auto businesses are hitting the brakes on growth as the U.S.-Canada trade conflict drags on — and the cost could top $2.9 billion in lost investment over the next year. That’s the warning from a new report by the Canadian Federation of Independent Business (CFIB), which found that nearly half (49 per cent) of Ontario’s automotive businesses have paused or cancelled planned investments due to trade uncertainty. The report also fou…
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