GM Cuts Profit Forecast by 20% and Says Auto Tariffs Will Cost It Billions

General Motors cut its profit forecast for 2025 on Thursday by more than 20 percent and said that the Trump administration’s tariffs would increase its costs by $4 billion to $5 billion this year.In a conference call with analysts, G.M.executives said the company now expects to make $8.2 billion to $10.1 billion this year, down from a previous forecast of $11.2 billion to $12.5 billion.“G.M.’s business is fundamentally strong as we adapt to the new trade policy environment,” the company’s chief executive, Mary T.

Barra, said.In April, President Trump imposed tariffs of 25 percent on imported vehicles and will begin imposing the same duty on imported auto parts on Saturday.On Tuesday the president modified how the tariffs are applied to give automakers some relief, including partial reimbursement for tariffs on imported parts for two years.Ms.

Barra said G.M.hopes to offset about 30 percent of the impact of the tariffs by increasing production in U.S.

plants, cutting costs, and working with suppliers to raise their domestic production of parts and components.G.M.had previously said it was increasing pickup truck production at a plant near Fort Wayne, Ind., which will reduce the number of vehicles it imports from Canada and Mexico.

Ms.Barra said output at the Fort Wayne factory would increase by about 50,000 trucks this year.She also said G.M.

now plans to make more battery modules in its U.S.plants to raise the portion of domestic content in its electric vehicles.About $2 billion in tariff-related cost increases will come from vehicles that are made in Canada, Mexico and South Korea and sold in the United States.Analysts have predicted that the tariffs will add thousands of dollars to the cost of new cars and trucks, and some or all of that would be passed on to consumers.

In the call, G.M.’s chief financial officer, Paul Jacobson, said the company now expects new vehicle prices to rise 0.5 percent to 1 percent this year, he added.Previously, the c...