General Motors Faces Tariff Turmoil Despite Strong Earnings

General Motors reported earnings exceeding expectations yet faced a near 9% stock drop due to concerns over potential tariffs from President Trump. Analysts worry these tariffs could hinder GM's 2025 targets, despite optimistic earnings projections. Preparations are underway, but uncertainties remain.

General Motors reported earnings that outpaced Wall Street's forecasts but still saw a significant drop in its stock value, with shares plummeting nearly 9% on Tuesday. The downturn comes amid investor concerns about potential tariffs, which could hinder the automaker's ability to meet its 2025 targets.

President Donald Trump has renewed threats of imposing tariffs on vital materials like steel, aluminum, and copper, essential to car manufacturing. Additionally, potential tariffs on Mexico and Canada, crucial to the U.S. automotive supply chain, exacerbate the uncertainty for the automaker.

Despite projecting a higher-than-expected net income for 2025, GM's outlook remains clouded by tariff threats and evolving electric vehicle regulations. In preparation, GM has begun relocating inventory from international markets to the U.S., while further strategic decisions await clarity on the tariff landscape.

(With inputs from agencies.)