This year, General Motors will leave an earlier prediction for solid profit growth as a result of the uncertainty created by President Trump's trade policy, the Automaker said Tuesday.
This month, the Trump administration has imposed 25 percent rates on imported cars and said that it will impose a 25 percent obligation on imported parts on Saturday. About half of the cars that GM sells in a typical year in the United States are made abroad, usually in Canada and Mexico.
“We are no longer going to give forward guidelines on rates until we have more clarity,” said the financial director of the company, Paul Jacobson, in a conference call with reporters. “We don't want to release the company that is a gamble in the midst of what the administration could do.”
He added that GM believed that the impact of Mr Trump's rates could be 'material', which means that they could have a significant effect on the income of the company this year.
GM's Chief Executive, Mary T. Barra, was planned to discuss the win results in a conference call on Tuesday, but the company postponed until Thursday because the White House was expected to announce changes in the car and car parts rates. The press secretary of the White House, Karoline Leavitt, said that Mr. Trump would sign an executive order on Auto rates on Tuesday.
GM also said on Tuesday that it earned $ 2.8 billion in the first quarter, a decrease of 7 percent compared to a year earlier. The company was injured by a decrease in profit by 14 percent before interest and taxes in North America, where it generates almost all its profit. The companies that serve the rest of the world recorded small profit.
The company said earlier that it expected between $ 11.2 billion and $ 12.5 billion in net income for 2025, about double the $ 6 billion it earned last year.
“The earlier guidance cannot be trusted,” said Mr. Jacobson.
In addition to the 25 percent rates for imported cars, the Trump administration has increased rates on imported steel and aluminum, which uses the costs of metals that are widely used in cars. Mr. Trump has also raised considerable rates on China and imposed high rates on many other countries that he later reduced to 10 percent for 90 days.
GM had “productive discussions” with the Trump administration about rates, Mr Jacobson said, but he refused to work out. “I don't want to be viewed when trying to negotiate in public,” he said. “We look forward to getting more clarity about the tariff situation for the car industry.”
The rates had a minimal impact on the financial performance of the company in the first quarter because they only came into force on 3 April, Mr Jacobson said. “The basic principles of our company are strong,” he said.
GM said earlier that it would increase the production of Pick -Up Truck in a factory near Fort Wayne, Ind., A movement with which it could reduce the import of trucks somewhat from Canada and Mexico.
