General Motors (GM.N) withdrew its 2025 financial forecast on Tuesday, pointing to the unpredictable impact of President Donald Trump’s global trade war, despite reporting strong first-quarter earnings.
In an unusual step, GM postponed its investor call to Thursday, allowing time to better evaluate the latest developments in U.S. tariff policy. Meanwhile, GM shares dropped around 2.6% in premarket trading.
Earlier this year, GM had predicted net income between $11.2 billion and $12.5 billion for 2025 — but this estimate did not account for the effects of new tariffs. Trump's unpredictable approach to trade has injected major uncertainty into the automotive sector, with analysts warning that new car prices could climb by several thousand dollars.
Chief Financial Officer Paul Jacobson emphasized that tariffs could have a major financial impact and advised investors not to rely on previous projections. He said the company would update its guidance once there is a clearer understanding of how tariffs will unfold.
Jacobson also noted that GM's expenses were already up by $400 million compared to the prior year, though he stressed that the underlying business remains healthy. He explained that the company’s first-quarter performance took a hit from fewer deliveries of its highly profitable full-size trucks and SUVs, largely due to temporary factory shutdowns for upgrades and a supplier fire in January.
Because of the economic uncertainty, GM announced it is putting its share buyback program on hold. The automaker had previously committed to buying back $2 billion in shares by mid-2025, but now plans to wait for greater stability before proceeding.
According to CFRA Research analyst Garrett Nelson, any positive news regarding tariff changes could help limit the company's potential losses.
Despite the challenges, GM posted a 2.3% rise in revenue, reaching $44 billion — beating analysts' expectations of $43 billion. Adjusted earnings per share came in at $2.78, slightly above estimates of $2.74. However, net income fell by 6.6% to $2.8 billion.
A surge in customer demand helped bolster results, as buyers hurried to purchase vehicles ahead of anticipated price increases. Research from the Center for Automotive Research estimates that Trump’s new 25% auto tariffs could add roughly $108 billion in extra costs for U.S. automakers this year.
In a partial concession, the Trump administration announced on Tuesday that it would soften some of the tariffs, easing levies on certain foreign auto parts used in U.S.-manufactured vehicles and avoiding cumulative tariffs on imported cars.
Many major corporations, not just automakers, have retracted their yearly earnings guidance due to the volatility triggered by tariffs. Consumer confidence has also weakened noticeably since February, when Trump intensified his threats of broader tariffs. Last week, Tesla also chose not to provide guidance, saying it would revisit the issue after its next earnings report.
GM’s international business showed some signs of improvement. In China, where GM is restructuring its operations, equity income rose to $45 million for the quarter — a sharp recovery from a $106 million loss in the same period last year.
The company's U.S. operations also performed strongly, with first-quarter auto sales rising about 17%, fueled in part by heightened demand for trucks. Analysts noted that customers rushed to make purchases in March before prices could surge further. Ford (F.N) and Stellantis (STLAM.MI), the maker of Ram trucks and Jeeps, also saw benefits, offering deeper discounts to capitalize on the buying spree.
Jacobson suggested that much of the industry’s strong March sales likely came from customers advancing their purchases ahead of potential price increases, and noted that this momentum has carried into April, with GM's U.S. deliveries jumping more than 20% compared to a year ago.
To meet this rising demand, GM has increased truck production at its Indiana plant, according to a Reuters report. The company plans to outline additional strategies to offset the tariffs during Thursday’s analyst call.
Jacobson added that GM has not yet made major strategic shifts in response to the tariffs but is concentrating on implementing fast, low-cost, and efficient measures until there’s more certainty.
Financial analysts are already adjusting their expectations. Barclays, for example, recently slashed its forecast for GM’s 2025 earnings before interest and taxes by 40%, factoring in lower sales volumes and an estimated $9.5 billion direct hit from tariffs. Roughly half of the vehicles GM sells in the U.S. are produced outside the country, making the automaker particularly vulnerable.
GM’s stock has dropped 12% so far this year, lagging behind Ford, which has gained about 3% in 2025.
