GM's Turbulent Road Amid U.S. Trade Wars

General Motors abandoned its annual forecast due to trade uncertainties under Trump's administration, despite strong quarterly results. Rising automotive tariffs potentially impact future profitability, causing GM's shares to drop. Revenue boosted by early purchases ahead of tariff increase, while overall net income fell.

General Motors has withdrawn its annual forecast citing uncertainties stemming from President Trump's aggressive trade policies. This decision, while reporting robust quarterly earnings, underscores the volatility impacting the automotive sector as it braces against potential cost surges due to new tariffs.

The company's revenue saw a promising 2.3% rise to reach $44 billion, driven by a consumer rush to purchase vehicles prior to inevitable price hikes. Despite these gains, GM's net income experienced a dip of 6.6%, accompanied by a marked 12% decline in its share prices to date.

Confronted with these challenges, GM has opted to pause its share buyback plans, eagerly awaiting clearer economic conditions. The company strategically anticipates further tariffs by ramping up truck production and promising swift measures to counteract negative impacts in discussions slated for later this week.

(With inputs from agencies.)