NEW YORK, May 1 (Xinhua) -- General Motors (GM) is lowering its profit expectations for the year as the U.S. carmaker braces for a potential impact from auto tariffs as high as 5 billion U.S. dollars in 2025.
GM said on Thursday it now foresees full-year adjusted earnings before interest and taxes (EBIT) in a range of 10 billion to 12.5 billion dollars. The guidance includes a current tariff exposure of 4 billion to 5 billion dollars. GM previously predicted 2025 adjusted EBIT between 13.7 billion and 15.7 billion dollars.
"The revised forecast comes after President Donald Trump signed executive orders Tuesday to relax some of his 25 percent tariffs on automobiles and auto parts, a significant reversal as the import taxes threatened to hurt domestic manufacturers," reported The Associated Press about the development.
Automakers and independent analyses have indicated that the tariffs could raise prices, reduce sales and make U.S. production less competitive worldwide. Trump portrayed the changes as a bridge toward automakers moving more production into the United States, added the report. ■