General Motors is leaving a previous prediction to increase solid profits this year as a result of the uncertainty created by President Trump’s commercial policies, the automaker said on Tuesday.
Trump’s administration imposed 25 % invoices on imported cars this month and said it would impose 25 percent task on the imported parties on Saturday. About half the cars that GM sells in the United States in a typical year are abroad, mainly in Canada and Mexico.
“We are not going to give more instructions for invoices until we are more clearly clear,” said Company Chief Financial Officer Paul Jacobson at a teleconference with journalists. “We don’t want to get a number from the company that is a guess in the midst of what the administration can do.”
He added that GM believed that the impact of Mr Trump’s invoices “could be material”, which means they could have a substantial effect on the company’s profits this year.
GM also said on Tuesday that it made $ 2.8 billion in the first quarter, a 7 % decrease compared to the previous year. The company was injured by a 14 % drop in profits before interest and taxes in North America, where it produces almost all its profit. His businesses that serve the rest of the world recorded small profits.
The company has previously said it is expected to make between $ 11.2 billion and $ 12.5 billion in net income for 2025, about twice the $ 6 billion it made last year.
“The previous guidance cannot be based,” Mr Jacobson said.
In addition to the 25 percent invoices for imported cars, the Trump administration increased invoices for imported steel and aluminum, increasing the cost of metals widely used in cars. Mr Trump also essentially increased invoices in China and imposed heavy invoices on many other countries that it later decreased to 10 % for 90 days.
GM had “productive discussions” with the Trump administration in invoices, Mr Jacobson said, but refused to process. “I don’t want to be considered to be trying to negotiate publicly,” he said. “We look forward to having more clarity around the state of the duties for the automotive industry.”
The invoices had a minimal impact on the company’s financial performance in the first quarter because they were not in force until April 3, Mr Jacobson said. “The basics of our business are strong,” he said.
GM has said in the past that it would increase truck production at a factory near Fort Wayne, Ind., A move that would allow it to reduce truck imports somewhat from Canada and Mexico.
