GM Earnings Hit by Trump Tariffs

General Motors is set to report its Q2 2025 earnings before the bell on Tuesday. Analysts expect adjusted EPS of $2.44 and revenue of $46.4 billion. Investors are watching for how President Donald Trump's auto tariffs will affect GM's results and for updates to full-year guidance. GM has been trying to counter tariff risks by investing $4 billion in US plants and moving production of some vehicles from Mexico to the US. The company's full-year guidance was lowered in May due to tariffs, and investors are also looking for commentary on GM's commitment to electric vehicles, which may be affected by the end of tax credits for EVs.

The article discusses the potential negative consequences of Donald Trump's copper tariffs, arguing that they will undermine his wider economic agenda. It highlights the importance of copper in the US economy, citing the Bingham Canyon mine in Utah as a significant producer. The article suggests that imposing tariffs on copper will have far-reaching effects on various industries that rely on the metal.

General Motors (GM) reported a significant hit to its profits due to tariffs, costing the company $1.1 billion in the last quarter and reducing its profit margin from 9% to 6.1%. The company is trying to mitigate the impact through manufacturing changes, cost initiatives, and price adjustments, but so far, has only managed to reduce the blow by a minimal amount. This is not an isolated incident, as another automaker, Stellantis, also reported paying $387 million in tariffs. The industry-wide trend suggests that car manufacturers are absorbing the higher tariffs as a hit to their profits rather than passing them along to customers.

President Donald Trump announced a trade deal with Japan, imposing a 15% tariff on Japanese goods, down from the previously threatened 25%. Japan agreed to invest $550 billion in the US and open its economy to American autos and rice. The deal is part of Trump's broader tariff strategy, which has raised concerns about higher prices for consumers and businesses. Trump also announced a trade framework with the Philippines and reaffirmed tariffs on Indonesia.