General Motors has revised its profit growth projections due to President Trump's trade policies, specifically the newly imposed tariffs on imported vehicles and parts. G.M. reported a $2.8 billion profit in the first quarter of this year, down 7% compared to last year. The tariffs, including significant increases on steel and aluminum, are expected to substantially affect earnings. G.M.'s CFO has expressed the need for clarity on these policies before providing any forward guidance, indicating reliance on past projections is unreliable.
General Motors is abandoning its previous profit growth forecast due to uncertainty from President Trump's trade policies, particularly new tariffs on imported cars and parts.
The company's CFO mentioned that G.M. will not provide further guidance on tariffs until there is more clarity, emphasizing the material impact of these tariffs on earnings.
G.M. reported a 7% decline in first quarter earnings, attributing the decrease to lower profits in North America, where it earns the majority of its income.
The previous profit guidance for the upcoming years is no longer reliable, as Mr. Jacobson states the company cannot predict its financial future amidst ongoing tariff changes.
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