General Motors has revealed that tariffs imposed by Donald Trump’s administration sliced an eye-watering $1.1 billion from its second-quarter profits, causing a 3% dip in its stock price. That throbbing hit knocked GM’s operating earnings down by nearly a third compared to the same time last year, the published numbers revealed.

GM stock value fell sharply on Tuesday following the release of the automaker's Q2 2025 earnings report, revealing a hefty 35.4-percent decline in net income.

GM warned the toll could grow in the second half of the year, reiterating its previous estimate of a $4 billion to $5 billion hit for the year. Shares dropped 7% during the day, even as the company's adjusted earnings per share of $2.

Analysts said GM may need to cut investment in future projects or find other ways to trim spending to offset the effect of tariffs.

General Motors' second-quarter earnings took a $1.1-billion hit from tariffs, but the automaker still beat analyst expectations for the period on Tuesday, supported by strong sales of its core gasoline trucks and SUVs.

General Motors (NYSE:GM) faces tariff pressures despite solid mitigation efforts, impacting profits and shares. Learn how trade risks shape GM's outlook.

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