General Motors CEO Mary Barra has announced GM will not raise vehicle prices despite facing pressure from tariffs.
In an interview with Fox Business, Barra said GM faces billions of dollars in earnings losses from the new tariffs the Trump administration has imposed but reassured customers will not pay the price.
Barra stated, “From a pricing perspective, we’ve said, and we’ve included in our guidance, it is going to stay at the same level as it is.”
She added, “We think there’s a lot we can do to impact those tariffs by continuing to increase our U.S. content and continuing to build even more cars in this country than we do today.”
GM CEO says wont raise car prices, even with tariffs.
Remember, most GM cars are made in the USMCA. They are all duty free providing 75% (?) of the car has loaded with parts sourced from Mexico, Canada or the US. It’s 25% if you are under that…
— Kenneth 老百姓 Rapoza (@BRICbreaker) May 1, 2025
General Motors CEO Mary Barra warns Trump’s tariffs will cost automaker up to $5B this year https://t.co/amenK9WOVS pic.twitter.com/A9RWjucw1B
— New York Post (@nypost) May 1, 2025
Here’s what Fox Business reported:
General Motors faces billions of dollars in new tariff-related hits to earnings but still plans to hold vehicle prices steady, CEO Mary Barra told FOX Business on Thursday, citing the company’s push to expand U.S. production.
With the side effects of tariffs looming, something has to give – but, for now, GM says customers won’t be paying the price.
“From a pricing perspective, we’ve said, and we’ve included in our guidance, it is going to stay at the same level as it is,” Barra told “Mornings with Maria.”
Barra credited strong demand for GM’s gas-powered and electric vehicles, noting the company hasn’t needed major incentives to drive sales and remains committed to giving consumers more choices.
To also absorb the tariff-related hit, Barra said GM is focusing on expanding domestic production.
“We think there’s a lot we can do to impact those tariffs by continuing to increase our U.S. content and continuing to build even more cars in this country than we do today,” she said.
$GM has lowered its profit outlook and says it’s going to take a tariff hit of $4 billion – $5 billion pic.twitter.com/A2VrAeNl3Y
— Joe Weisenthal (@TheStalwart) May 1, 2025
Per The New York Post:
General Motors on Thursday slashed its full-year forecast as its CEO Mary Barra warned of “a current tariff exposure of $4 billion [to] $5 billion.”
The company, which owns brands including Chevrolet, Buick and Cadillac, now expects a profit between $8.2 billion and $10.1 billion, down from previous projections of between $11.2 billion and $12.5 billion, as it faces a steep 25% tariff on foreign vehicle imports.
It expects adjusted earnings of $8.25 to $10 a share, down from its previous forecast of $11 to $12 a share.
GM’s lowered forecast comes after Trump earlier this week announced efforts to ease the impact of tariffs on US automakers, preventing levies on other goods – like steel and aluminum – from stacking on top of his taxes on foreign vehicles.
The changes will be applied retroactively, so automakers could potentially receive refunds for taxes already paid on imports.
Trump also modified his planned taxes on auto parts, which were initially set to take effect on Saturday at 25%.
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