General Motors said Tuesday that its profit in the second quarter fell by more than a third, after President Donald Trump’s tariffs cost the company more than $1 billion.
GM was the second auto maker this week to show the toll that the Trump administration’s trade policies are taking on the industry. Stellantis, the maker of Chrysler, Jeep and Ram vehicles, has lost 2.3 billion euros ($2.7 billion) in the first half, partly because of tariffs and other Republican policies.
Auto makers are an important pillar of the US economy, and the industry employs about 1 million manufacturing workers.
Eroding profits will make it harder for them to invest in new technologies to withstand growing competition from Chinese auto makers that have been expanding abroad.
GM’s profit for the quarter was $1.9 billion, down from $2.9 billion in the same quarter last year. Sales fell 2 per cent to $47 billion. GM CEO Mary Barra said in a letter to shareholders that the company is investing $4 billion to increase production in the United States of pickups and sport utility vehicles that would be less susceptible to tariffs.
“We are positioning the business for a profitable future as we adapt to new trade and tax policies, and a rapidly evolving tech landscape,” Barra said.
New York Times News Service
