GM's Uncertain Road: Navigating Tariff Turbulence

General Motors withdrew its annual forecast due to uncertain U.S. trade policies, despite robust quarterly earnings. The automaker's decision follows fluctuating tariff impacts, notably affecting new car prices. Analysts backed GM's cautious approach, highlighting potential sales growth with consumer demand on the rise.

General Motors made headlines on Tuesday by retracting its annual forecast, a strategic response to the unpredictable repercussions of President Donald Trump's global trade policies, despite posting strong quarterly results. GM has postponed its investor call to Thursday, opting to comment on tariff policy changes after further clarity.

In January, GM projected a net income between $11.2 billion and $12.5 billion for 2025, excluding tariff effects. Analysts estimate potential surges in new car prices due to the inconsistent tariff policies. GM CFO Paul Jacobson advised stakeholders not to depend on previous guidance, promising updates once tariff implications are clearer.

The company's quarterly performance faced hurdles such as diminished deliveries of key models due to historic plant upgrades and supply disruptions. GM has temporarily halted share buybacks, aiming to recalibrate once economic uncertainties dissipate. Meanwhile, a rise in U.S. auto sales offers some optimism for the automaker's future.

(With inputs from agencies.)