Mary Barra, CEO of General Motors (GM), the largest automaker in the United States, expressed her gratitude to President Donald Trump for his support of the American auto industry in her Q1 2025 letter to shareholders. However, she also revealed that GM is facing up to 5 billion USD in potential losses this year due to the tariff policies.
Barra emphasized that GM is maintaining a strong dialogue with the administration and will continue to respond with flexibility and discipline.
GM recorded first-quarter revenue of 44 billion USD, a 2% increase compared to the same period last year, with significant performance in the electric vehicle (EV) segment. The strong sales of new models such as the Chevrolet Equinox EV, Blazer EV, and Cadillac Lyriq solidified GM’s position as the second-largest EV seller in the U.S.
However, due to the Trump administration’s 25% tariff on imported vehicles, GM has lowered its full-year net profit forecast from 12.5 billion USD to 10.1 billion USD. In response, the company has withdrawn its annual earnings guidance and opted not to hold a Q1 earnings call, taking a more cautious approach.
Meanwhile, President Trump recently signed an executive order easing tariffs on imported auto parts. As a result, manufacturers assembling vehicles in the U.S. are expected to face reduced tariff burdens on imported components.
GM’s case highlights how vulnerable large manufacturers that rely on global supply chains can be to political risk. Despite success in the EV market, unpredictable policy changes remain a major obstacle to strategic planning for companies.
While the Trump administration’s tariff policies may offer short-term protection for domestic manufacturers, there are concerns that they could undermine global competitiveness in the long term. Companies may need to respond strategically by diversifying production bases or restructuring supply chains.
Furthermore, sustaining growth in the electric vehicle market will require a stable policy environment. Close cooperation between the government and businesses, as well as predictable policymaking, is essential.
