A second major automaker has blamed President Donald Trump’s tariffs for a giant loss – in this case, General Motors. The company announced July 21 that tariffs knocked $1.1 billion off its operating income in Q2 of 2025.

Also on July 21, Stellantis, which makes Vauxhall, Jeep,  Fiat Alfa Romeo, Maserati, Citroen, Chrysler and Dodge vehicles, said the tariffs had already cost the company €300 million ($349.2 million). 

The Guardian reports that GM’s Q2 core profit fell 32% to $3 billion, and the company said it expects the tariff impact to worsen in the third quarter. Revenue for the quarter ending June 30 fell nearly 2% from a year ago, to about $47 billion. The company also doubled down on a previous estimate that trade headwinds threaten to hit the bottom line by $4 billion to $5 billion. GM said it could take steps to mitigate at least 30% of that impact.

GM is the largest U.S. automaker by market share in an industry that employs nearly 1 million workers in the U.S.

In a letter to shareholders, Mary Barra, the chief executive, said GM is “positioning the business for a profitable, long-term future as we adapt to new trade and tax policies, and a rapidly evolving tech landscape.”

In June 2025, GM announced plans to invest $4 billion over the next two years into three U.S. auto plants in Michigan, Kansas, and Tennessee, after announcing a $888 million investment in a Tonawanda, New York plant to support GM’s next generation V-8 engine.

In the shareholder letter, Barra said the investments will “greatly reduce our tariff exposure,” with the new manufacturing capacity to begin coming online in 18 months.