General Motors said Monday it would withdraw guidance it issued over its potential profits this year because of President Trump’s tariffs, which have sparked uncertainty in the auto sector as well as the broader economy.
Earlier this year, the company projected its earnings would fall between $11 and $12 a share, but it said an unexpected shift in trade policy makes it harder to accurately predict future profits.
“Because the original guidance didn’t include impact from tariffs, prior guidance can’t be relied upon,” said Paul Jacobson, General Motors chief financial officer, on a call with reporters according to Bloomberg.
“We will update when we have more information on tariffs,” he added.
The company announced first quarter earnings of $2.78 billion, or $3.35 per share, for the first three months of the year. Last year, General Motors raked in $2.98 billion, or $2.56 per share, in the first quarter.
But company executives believe 2025 profits could be threatened by the president’s new trade policy.
Jacobson is slated to hold a Thursday conference call with investors alongside GM Chair and CEO Mary Barra to provide updated 2025 full-year guidance.
In March, Trump imposed a 25 percent tariff on foreign vehicles and automobile parts. A month prior, the leader imposed a 25 percent tariff on steel and elevated the tariff to 25 percent on aluminum, rattling the auto market with the objective to boost domestic manufacturing.
White House officials signaled early Tuesday the Trump administration may reduce tariffs on auto companies.
A proposed reduction would reimburse automakers who are paying steep tariffs and could exempt them from levies on steel and aluminum, according to The Wall Street Journal.
“President Trump is building an important partnership with both the domestic automakers and our great American workers,” Commerce Secretary Howard Lutnick said, according to the outlet.
“This deal will be a major victory for the president’s trade policy by rewarding companies who are already manufacturing domestically, while providing a runway to manufacturers who have expressed their commitment in investing in America and expanding domestic manufacturing.”
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