(The Hill) – American automaker General Motors (GM) said Thursday that President Trump’s tariffs could cut as much as $5 billion from its profits this year.
In a letter to investors, GM CEO and Chair Mary Barra said her company has “had continual discussions with the President and his team since before the inauguration.”
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“They have invested the time to understand what it takes to be successful in this capital-intensive and highly competitive global industry, how we can work together to grow American manufacturing, and the importance of companies like GM to communities across the country,” she added.
Barra also said in the letter that taking into account “the positive impact of the Administration’s actions this week,” $10 billion and $12.5 billion in earnings before interest and taxes is expected by the company this year, with a $4 billion to $5 billion loss due to the president’s tariffs.
On Tuesday, the president signed executive orders pulling back 25 percent tariffs on imported automobiles and auto parts set to go into effect on Saturday. The administration is going to relieve foreign auto parts from experiencing a double hit by way of Trump’s auto tariffs and prior tariffs on foreign metals, with the U.S. charging the highest possible rate for products.
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Automakers will also be allowed to request 15 percent price offsets within the tariffs’ first year and a 10 percent offset the following year.
“We look forward to maintaining our strong dialogue with the Administration on trade and other policies as they continue to evolve. As you know, there are ongoing discussions with key trade partners that may also have an impact. We will continue to be nimble and disciplined and update you as we know more,” Barra said in her letter.
