GM Pauses Forecast Amid Trade War Turmoil

General Motors withdrew its annual guidance in response to President Trump's fluctuating auto tariffs, despite strong first-quarter earnings. The tariffs, projected to add significant costs for U.S. automakers, prompted GM to temporarily halt share buybacks and navigate increased expenses. Analysts foresee potential impacts on new car prices and automaker strategies.

On Tuesday, General Motors took a significant step by withdrawing its annual forecast, reflecting the unpredictability caused by President Donald Trump's global trade war, despite reporting strong quarterly earnings. The automaker delayed its investor call to Thursday, seeking more clarity before commenting on potential changes to tariff policies.

President Trump is poised to soften auto tariffs through an executive order following lobbying by automakers, officials indicated, as GM shares dropped by nearly 1%. Earlier this year, GM projected a net income for 2025 that excluded the impact of automotive tariffs, highlighting the uncertainty in the sector.

GM CFO Paul Jacobson stated that higher labor and warranty expenses increased costs by $400 million within a year. GM is strategically pausing its share buyback plan, pending further economic insight, and plans to discuss additional measures in an upcoming analyst call. The automaker's strategic decisions will hinge on future tariff clarity.

(With inputs from agencies.)