General Motors slightly lowered its expected hit from tariffs while lifting its financial outlook for the year, after beating earnings expectations for the third quarter.

The Guardian reports the automaker is expecting relief on tariffs on imports of parts and cars into the U.S. while confronting a weakening market for electric vehicles.

The company now expects its annual adjusted core profit to be between $12 billion and $13 billion, compared with its prior estimate of $10 billion to $12.5 billion. GM said the financial hit from tariffs introduced earlier this year would be less than anticipated, in a range of $3.5 billion to $4.5 billion, from the previous estimate of $4 billion to $5 billion.

Relief on tariffs may come in the form of Donald Trump’s order, announced October 17, to expand credits for U.S. auto and engine production, allowing companies to receive a credit equal to 3.75% of the suggested retail price for U.S.-assembled vehicles through 2030 to offset import tariffs on parts.

“I... want to thank the President and his team for the important tariff updates they made on Friday. The MSRP offset program will help make U.S.-produced vehicles more competitive over the next five years,” GM’s CEO, Mary Barra, said in a letter to shareholders.

The Detroit auto giant earlier in October took a $1.6 billion charge from changes to its EV strategy. At the end of September, a $7,500 tax credit on battery-powered models went away, and there has been further loosening of regulations on vehicle emissions.

“By acting swiftly and decisively to address overcapacity, we expect to reduce EV losses in 2026 and beyond,” said Barra, in the letter, adding that she expects the company to incur future charges related to EVs.