General Motors expects tariffs from the Trump administration to cost the carmaker as much as $5 billion in 2025, after cutting its profit forecast for the year by more than 20%.

The New York Times reports that, as of May 1, GM projects its profits for 2025 to range between $8.2 billion and $10.1 billion, down from the $11.2-$12.5 billion it had previously expected to take in. Roughly $2 billion in added costs from tariffs are expected to come from vehicles imported into the U.S. from Canada, Mexico and South Korea. In a call with analysts, GM chief financial officer Paul Jacobson also said that the company expects new vehicle prices to rise by up to 1% in 2025, after initially projecting prices to fall by 1-1.5%. 

This is despite President Trump signing an executive order on April 29 to soften the impact of 25% tariffs on imported vehicles and auto parts, by giving carmakers a reprieve from separate tariffs on imported steel and aluminum, and giving companies that produce and sell completed automobiles in the U.S. an offset worth up to 3.75% of the value of an American-made car. GM will still face tariffs on the roughly 1 million cars and trucks it builds annually in Mexico and Canada, as well as the 400,000 vehicles it imports from South Korea each year. Additionally, all 1.7 million cars and trucks GM built in the U.S. in 2024 contained foreign parts to varying degrees. 

GM will look to offset roughly 30% of tariff costs by ramping up production at its existing U.S. plants, and working with its suppliers to increase domestic manufacturing of parts. Output at GM's Fort Wayne, Indiana factory is also expected to increase by an estimated 50,000 trucks this year alone.