The company’s second-quarter core profit fell 32 per cent to $3bn (£2.2bn) and said it expected the tariff impact to worsen in the third quarter.
The car maker’s revenue in the quarter ending on 30 June fell nearly 2 per cent year-on-year, to about $47bn (£34.8bn). Shares fell by three per cent on the back of the news.
GM is currently the largest US auto manufacturer by market share and it employs about 162,000 people globally.
In a letter to shareholders, chief executive Mary Barra said GM was ‘positioning the business for a profitable, long-term future as we adapt to new trade and tax policies, and a rapidly evolving tech landscape’.
GM also revised its annual forecast due to the impact of Trump’s tariffs, lowering it to an annual adjusted core profit of between $10bn (£7.34bbn) and $12.5bn (£.9.23bn).
In June, GM announced plans to invest $4bn (£2.95bn) over the next two years into three new US plants in Michigan, Kansas and Tennessee, plus a new V8 engine plant in Tonawanda, New York.
In the shareholder letter, Barra said the investments will ‘greatly reduce our tariff exposure’ with the new manufacturing capacity starting within 18 months.
