General Motors has reported a sharp fall in profits after taking a $1.1 billion hit from new import tariffs introduced under President Trump’s escalating trade war.
The US carmaker said its second-quarter core profit dropped by 32 per cent to $3 billion, and warned that the financial impact would worsen in the third quarter.
The Detroit-based company, which remains America’s largest carmaker by volume, attributed the drop to new duties on vehicles manufactured in Canada, Mexico, and South Korea—a key part of its global production network. Revenue also fell by nearly 2 per cent year-on-year to $47 billion.
In a letter to shareholders, Chief Executive Mary Barra said GM was taking aggressive action to mitigate the impact of the tariffs, including $4 billion of new investment in US assembly plants to reduce reliance on imports. The company expects to build more than 2 million vehicles annually in the US as it scales domestic production.
“We are working to greatly reduce our tariff exposure,” Barra wrote. “Despite the near-term pressure, we remain focused on a profitable, flexible future.”
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