GM Stock Falls As Automaker Halts Some US Vehicle Exports to China Amid Trade Tensions

Shares of General Motors Co. dropped on Monday after the company announced a halt to exporting vehicles from the US to China due to changing economic conditions and persistent trade tensions.

According to a Reuters report, the company announced to its Chinese employees and dealers last week that its Durant Guild premium import business, which handles vehicle shipments from the United States, would undergo restructuring. 

Less than 0.1% of GM's total sales volume in China came from this particular unit. 

A GM representative said that shifting economic conditions prompted the decision while optimizing their Chinese operations.

This development occurred after increased trade disputes between the U.S. and its major international partners. 

On Sunday, U.S. Vice President J.D. Vance and Canadian Prime Minister Mark Carney met in Rome to discuss trade relations.

American manufacturers continue to experience pressure despite the U.S. and China starting discussions to reduce tariffs and establish a lasting trade agreement. 

Earlier, the U.S. exported goods to China under tariff rates that exceeded 100%.

GM also faces increasing uncertainty from domestic regulations. 

“Thousands of white-collar employees” have reportedly been instructed to pressure U.S. senators into preventing California from implementing its 2035 prohibition on new gasoline vehicle sales. 

As the Wall Street Journal reported this week, GM internally warned that unrealistic emissions standards would increase vehicle prices while restricting consumer options. 

The automaker initially committed to California's emission standards by promising to sell only electric vehicles by 2035, but reversed its position as EV demand decreased while production costs increased.

On Stocktwits, retail sentiment was ‘bearish’ amid ‘low’ message volume.

The stock has declined 2.6% so far in 2025.

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