American automotive companies report billions of dollars lost due to Trump’s tariffs

President Donald Trump’s tariffs on imported vehicles and auto parts has cost General Motors, the United States’ largest automobile manufacturer, $1.1 billion in the second quarter of 2025 alone, according to the company.

The company also said that its operating income for the year is projected to come to be between $10-$12.5 billion. The company earned $14.9 billion in 2024.

“We’ve got a longer-term plan to be able to mitigate a substantial part of this,” GM CFO Paul Jacobson told investors and analysts Tuesday. “We’re obviously looking for things to normalize around these trade deals that will get done, and we expect that will happen.”

Trump’s 25% tariffs on all imported vehicles and auto parts went into effect in May, and economists projected job losses, higher prices for consumers and closures as a result.

On Friday, Michigan auto supplier Detroit Axle announced that it will permanently close one of its warehouses and cut 102 jobs because of the disruptions to the automotive parts supply chain connected to the tariffs.

“The decision to close this facility is due to unforeseen circumstance, specifically the sudden imposition of government tariffs, which have significantly disrupted our supply chain and sharply increased the costs of goods,” CEO Mike Musheinesh said in a statement. These changes have had a direct and unanticipated impact on our warehouse operations, making it financially unsustainable to continue operating this facility.”

GM’s rival Stellantis, the maker of Jeeps and Rams, announced that Trump’s tariffs contributed to a projected net loss of $2.68 billion in the first half of 2025.