-+ 0.00%
-+ 0.00%
-+ 0.00%

GM Faces $5 Billion Hit From Trump Tariffs, But Prices To Stay 'About The Same,' Says CEO Mary Barra: 'We're Going To Respond To The Market'

Benzinga·05/02/2025 06:56:24
Listen to the news

General Motors Co. (NYSE:GM) CEO Mary Barra says that U.S. President Donald Trump's tariffs on the automotive industry will cost the company over $5 billion, but assures that GM’s pricing will remain the same.

What Happened: The company expects a tariff exposure of anywhere between “$4 to $5 billion,” GM said in a call with investors. However, the company does not expect to pass the costs on to the customer. "We believe …pricing is going to stay at about the same level as it is," Barra said in an interview with CNN on Thursday.

"Pricing changes in our industry at least monthly, and sometimes more frequently. We're going to respond to the market," she said.

Why It Matters: The news comes in as GM cuts its 2025 forecast, citing uncertainty in the auto industry as a result of Trump's auto tariffs. The company also lowered its Earnings Per Share or EPS guidance to $8.25 – $10.00.

However, the Detroit-based automaker isn't the only company that isn't hiking prices for its vehicles. Recently,  Ford Motor Co. (NYSE:F) CEO Jim Farley announced the company would not hike its prices, but instead would extend the employee pricing program.

Elsewhere, President Trump's announcement that the administration will alleviate some of the tariffs levied on the auto industry and prevent ‘stacking' of tariffs could provide the sector with a boost.

GM Stock scores well on Value and Quality metrics, and has a satisfactory score on Momentum and Growth metrics. For more such insights, sign up for Benzinga Edge today!

Check out more of Benzinga's Future Of Mobility coverage by following this link.

Read Next:

Photo courtesy: Jonathan Weiss / Shutterstock.com