General Motors has halted share buybacks and cautioned investors that its earlier annual guidance is no longer dependable due to the uncertainty stemming from Trump’s tariff conflict.
GM CFO Paul Jacobson stated that the lack of clarity around future tariff data prevents stakeholders from relying on previous forecasts. He explained that GM will revise its estimates once again when accurate information about tariffs becomes available. Additionally, the company has suspended its share buyback program until it gains a clearer understanding of the economic outlook.
In January, GM projected adjusted operating earnings for the full year to range between $13.7 billion and $15.7 billion, with net income estimated at $11.2 billion to $12.5 billion. However, the company noted that these forecasts did not factor in potential policy changes regarding tariffs.
On Tuesday, GM declared that it is withdrawing the guidance after reporting a 9.8% decline in first-quarter adjusted profits.
The company also rescheduled its analyst call to Thursday due to recent trade policy developments.
The U.S. auto industry has been lobbying for relief after the imposition of a 25% tariff on foreign-made car imports, which excludes Mexico and Canada, while a 25% tariff on auto parts is scheduled to take effect on May 3.
GM’s robust first-quarter sales, reflecting a broader rise in U.S. auto sales, indicate that the impending tariffs may have encouraged consumers to expedite their purchases. Deeper discounts from competing automakers likely contributed to this pattern. Jacobson noted the early demand in March and confirmed that strong sales momentum has carried into April.
To offset the impact of tariffs, GM has revealed its intention to ramp up annual production of full-size pickup trucks by around 50,000 units at its Fort Wayne, Indiana, assembly plant.
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