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Tariffs Slow New Car Buyers And Spark GM To Reduce Earnings Forecast

In an article by Edgar Sten published on Forbes on May 1, 2025, it is reported that General Motors (GM) has lowered its earnings forecast due to increased tariffs on imported vehicles and parts, which are expected to raise costs and reduce profitability. The new tariffs, part of a broader trade policy shift, are anticipated to not only affect GM's bottom line but also increase vehicle prices for consumers, thereby exacerbating economic pressures amid ongoing inflation concerns. The article highlights that these tariffs could lead to a significant reduction in GM's annual earnings, projecting a decrease from an earlier estimate of $10 billion to around $8.5 billion. Additionally, the piece discusses the potential ripple effects on the automotive industry and the broader economy, suggesting that other manufacturers might follow suit with revised forecasts, and consumers could face higher costs across various sectors as a result of these trade policies.

Read the Full Forbes Article at:
[ https://www.forbes.com/sites/edgarsten/2025/05/01/tariffs-spark-reduced-gm-earnings-forecast-boost-consumer-pain/ ]