GM Expects $500M Boost from Tariff Refunds
General Motors said it expects to receive $500 million in tariff refunds from the federal government. The automaker announced the calculation in its Q1 2026 letter to shareholders April 28.
To reflect the flow-through of this adjustment, GM said it is raising its full-year EBIT-adjusted guidance by $500 million, to a range of $13.5 billion to $15.5 billion.
GM said it made $2.6 billion in the first quarter of 2026, a 6% decline from the same period a year ago.
President Donald Trump’s tariffs imposed in April 2025 under the International Emergency Economic Powers Act of 1977, or IEEPA, were struck down by the U.S. Supreme Court in February, and the administration began accepting applications on April 20 from businesses applying for refunds for more than $166 billion in illegally levied tariffs. However, more tariffs, with different legal foundations, are underway.
Read More: Explained: How Trump Can (Try to) Impose Tariff
The New York Times reports that the company is also affected by other tariffs — including those on imported steel, aluminum, cars and auto parts — that Trump imposed using Section 232 of the Trade Expansion Act of 1962. Those tariffs, which were not covered by the Supreme Court decision, remain in place.
To reflect the flow-through of this adjustment, GM said it is raising its full-year EBIT-adjusted guidance by $500 million, to a range of $13.5 billion to $15.5 billion.
GM said it made $2.6 billion in the first quarter of 2026, a 6% decline from the same period a year ago.
President Donald Trump’s tariffs imposed in April 2025 under the International Emergency Economic Powers Act of 1977, or IEEPA, were struck down by the U.S. Supreme Court in February, and the administration began accepting applications on April 20 from businesses applying for refunds for more than $166 billion in illegally levied tariffs. However, more tariffs, with different legal foundations, are underway.
Read More: Explained: How Trump Can (Try to) Impose Tariff
The New York Times reports that the company is also affected by other tariffs — including those on imported steel, aluminum, cars and auto parts — that Trump imposed using Section 232 of the Trade Expansion Act of 1962. Those tariffs, which were not covered by the Supreme Court decision, remain in place.
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