General Motors’ profit slides by 32% in second quarter, and Trump’s tariffs are to blame

GM's second-quarter core profit dropped 32% to $3 billion, significantly below expectations. Revenue also decreased by nearly 2% to approximately $47 billion. Tariffs imposed a $1.1 billion negative impact on the results. Adjusted earnings per share fell to $2.53, compared to $3.06 the previous year, slightly exceeding analyst predictions. GM anticipates a worsening tariff impact in the third quarter, estimating a $4 billion to $5 billion total loss. The company aims to mitigate at least 30% of this impact. Despite tariff challenges, GM's US sales increased by 7%, driven by strong pricing for trucks and SUVs. The company also returned to profitability in China. GM maintained its lowered annual adjusted core profit guidance of $10 billion to $12.5 billion. Shares fell by about 3% in premarket trading.