General Motors said Thursday that the tariffs imposed by President Trump over the last few weeks could reduce its earnings by as much as $5 billion this year.
The company cut its profit outlook, telling investors it now expects to earn between $10 billion and $12.5 billion before taxes this year. In guidance provided in January, the company said it expected to earn as much as $15.7 billion in 2025.
The company said it has an exposure to tariffs of $4 billion to $5 billion. GM Chief Financial Officer Paul Jacobson said the automaker expects to offset at least 30% of its potential tariff costs through "self-help initiatives," and those savings are reflected in the updated earnings projections.
The latest projections incorporate changes made by the Trump administration this week, the company said. Earlier this week, Trump signed an executive order intended to shield domestic automakers by reimbursing some tariff costs and reducing the "stacking" of multiple tariffs on car parts and materials such as steel and aluminum.
GM CEO Mary Barra told CNBC that the company will rely on its existing factories in the U.S. to boost production of components that previously came from foreign sources, rather than building new facilities. "We're going to leverage that footprint that we have because we have the ability to add capacity to many of those plants," she said. "So we can do this efficiently, and it's going to allow us to do this more quickly than if we were going to start with a greenfield."