General Motors Chair and CEO Mary Barra wrote in a letter to shareholders that President Donald Trump’s recent tariff amendments allowed the company to trim its full-year EBIT-adjusted guidance to between $10 billion and $12.5 billion, including a current tariff exposure of $4 billion to $5 billion.

GM previously predicted its 2025 adjusted EBIT to fall between $13.7 billion and $15.7 billion.

In March, Trump said vehicle imports and certain automobile parts continued to potentially “impair” national security, so he planned the tariffs on vehicles to begin on April 3 and tariffs on certain parts to go into effect on May 3.

According to an April 29 proclamation from Trump, automakers can apply for an import adjustment offset amount applicable to Section 232 duties on automobile parts that account for 15% of the value of a vehicle assembled in the U.S. for one year and equivalent to 10% of that value for an additional year, as follows:

• • Equal to 3.75% of the aggregate Manufacturer’s Suggested Retail Price (MSRP) value of all automobiles assembled in the United States from April 3, 2025, through April 30, 2026. This percentage rate reflects the total duty owed when a 25% tariff is applied to parts that account for 15% of a vehicle’s MSRP value.
  • Equal to 2.5% of the aggregate MSRP value of all automobiles assembled in the United States from May 1, 2026, through April 30, 2027. This percentage rate reflects the total duty owed when a 25% tariff is applied to parts that account for 10% of a vehicle’s MSRP value.

“We look forward to maintaining our strong dialogue with the administration on trade and other policies as they continue to evolve,” Barra wrote in her May 1 letter. “As you know, there are ongoing discussions with key trade partners that may also have an impact. We will continue to be nimble and disciplined and update you as we know more.

“Importantly, GM’s business is growing and fundamentally strong as we adapt to the new trade policy environment, further strengthen our supply base, and drive EV profitability.”

Also on April 29, Trump issued an executive order that clarifies tariffs on Mexico and Canada under the International Emergency Economic Powers Act (IEEPA) and on steel, aluminum, automobiles, and automobile parts under Section 232 are not to be cumulatively applied to, or “stacked” on the same imported product.

The order is retroactive to applicable import tariffs since March 4, 2025, so importers who believe they’ve overpaid can request refunds.

On April 30, Stellantis announced it had suspended its 2025 financial guidance due to tariff-related uncertainties.

“The company is highly engaged with policymakers on tariff policies, while taking action to reduce impacts,” the Stellantis press release states.

The OEM added that it is “protecting the company while engaging extensively with relevant governments to facilitate informed implementation and evolution of policies.”

“At the same time, management is taking action to adjust production plans and identifying opportunities for improved sourcing,” the release states.

Last month, Hyundai Motor America launched its Customer Assurance program in response to “dynamic market conditions and the potential impact of tariffs on the automotive industry.”

“This unique initiative reinforces Hyundai’s long-standing commitment to supporting American consumers and safeguarding affordability,” Hyundai said. “This initiative ensures that customers who purchase or lease any new Hyundai vehicle between today [April 4] and June 2, 2025, will see no increase in the MSRP during the protection window. Customers can enjoy the peace of mind of knowing that MSRP will not increase, regardless of market conditions, providing financial reassurance and the time to make the right choice for their transportation needs.”

On April 21, six trade groups representing automakers and the aftermarket wrote to the Departments of the Treasury and Commerce asking that regulations to implement Trump’s 25% tariff on imported automotive parts allow them more time to reroute supply chains.

Last week, Mercedes-Benz announced its plans to manufacture more vehicles in the U.S. at its Tuscaloosa, Alabama plant.

According to a press release from the OEM, the company has exported roughly two-thirds of its annual output for many years, “making it one of the largest exporters of automobiles from the U.S., contributing to the U.S. trade balance.”

By 2027, a core segment vehicle will be manufactured at the plant.

“We are working with around 400 suppliers in the United States and are sourcing our local demand for steel and aluminum almost exclusively in the United States,” Mercedes stated in the release.

The Tuscaloosa operation is the global hub for Mercedes-Benz SUVs — the GLE, GLS, GLE Coupe, EQS, EQE, Mercedes-Maybach, and the Mercedes-Maybach EQS, according to the release.

Images

Featured image: Stock photo of the port of Houston, Texas, Morgan’s Point. (Credit: Art Wager/iStock)