GM Navigates Tariff Turbulence with Uncertain Forecasts

General Motors has withdrawn its annual forecast due to uncertainty caused by President Trump's fluctuating tariff policy. Despite strong quarterly earnings, the automaker faces challenges including increased costs and paused share buybacks. Analysts support GM's cautious approach as the auto industry braces for potential price hikes.

General Motors (GM) has retracted its annual forecast, citing uncertainty from U.S. President Donald Trump's variable tariff policies as the reason. Despite recording robust quarterly performance, the automaker is treading cautiously by postponing its investor discussion until more clarity on tariff adjustments emerges.

The automaker had anticipated net income figures between $11.2 billion and $12.5 billion for 2025, excluding the influence of new automotive tariffs. Analysts suggest such policies could significantly increase consumer car prices, potentially impacting sales volumes.

With higher costs, a temporary halt in share buybacks, and the need to strategize against economic unpredictability, GM's Chief Financial Officer, Paul Jacobson, emphasizes the importance of waiting for concrete information on tariffs before proceeding with major strategic decisions.

(With inputs from agencies.)