General Motors Lost More Than A Billion Dollars Because Of Trump's Duties

• 23.07.2025, 15:37

And that's not the limit yet.

General Motors recorded a $1.1 billion drop in profit for the second quarter of 2025 - mainly due to new customs duties, writes motor1.com.

The company remains confident about the future, however, betting on steady demand, especially in the electric vehicle segment.

According to CEO Mary Barra and CFO Paul Jacobson, despite tariff pressures, GM managed to post record first-half revenue of $91 billion. Rising sales in April and May, ahead of expected price increases, played a key role in that, with consumers eager to buy cars before the duties began to affect costs.

The Equinox crossover showed particularly impressive results, with sales up 20 percent from a year ago. In the electric car segment, Chevrolet was the second-best-selling brand in the U.S. for the quarter, with Cadillac fifth. While the company expects demand to decline due to the elimination of federal subsidies, sentiment for the future of the electric car trend remains positive.

Duties, however, continue to pose serious challenges. Despite its image as an American automaker, GM has suffered sizable losses due to imports from South Korea, where models such as the Trailblazer, Trax, Encore GX and Envista are produced. The company's total losses from duties in 2025 are estimated at 4-5 billion dollars, of which about 2 billion dollars fall on Korean imports.

To reduce dependence on foreign supplies, GM is already reviewing production chains and plans to reduce the impact of duties by at least 30%. However, the company is under no illusions: this is not a quick process and will take time.