GM’s Mary Barra Highlights Efforts To Mitigate Tariff Impact After Q2 Earnings Take Hit: Retail Sees Levies Impact Consumer Spending

General Motors (GM) CEO Mary Barra on Tuesday reiterated the company’s efforts to mitigate tariff impact in the future after the company reported a $1.1 billion net impact from the levies in the second quarter.

GM stock is trading 2% lower in the pre-market session on Tuesday. On Stocktwits, retail sentiment around the stock jumped from ‘neutral’ to ‘extremely bullish’ over the past 24 hours, while message volume jumped from ‘normal’ to ‘high’ levels with a 460% surge in message count in 24 hours.

The company incurred a $1.1 billion net impact in the second quarter, reflecting minimal mitigation offsets, and expects the third-quarter net impact to be higher. The company reaffirmed that it expects the full-year 2025 gross tariff impact to be between $4 billion and $5 billion.

The company, however, is making progress to mitigate at least 30% of this impact through manufacturing adjustments, targeted cost initiatives, and consistent pricing, it said.

Barra said in a letter to shareholders that they are 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 we announced $4 billion of new investment in our U.S. assembly plants to add 300,000 units of capacity for high margin light-duty pickups, full-size SUVs and crossovers. This will help us satisfy unmet customer demand, greatly reduce our tariff exposure, and capture upside opportunities as we launch new models,” Barra added.

GM on Tuesday reported earnings per share of $2.53, down from $3.06 in the corresponding quarter of 2024, and in line with an analyst estimate of $2.53, as per data from Fiscal AI. The company pinned the dip in earnings to the tariff impact.

The company’s vehicle sales in the three months through the end of June also came in around 974,000 units, down from 1,043,000 units in the corresponding quarter of last year.

Quarterly revenue came in at $47.12 billion, down from $47.97 billion reported in the second quarter of 2024 and above an expected $45.95 billion.

For the full year, the company expects to report diluted and adjusted earnings of $8.25 to $10, and net income attributable to stockholders of $7.7 billion to $9.5 billion.

GM had initially set its sights on offering exclusively EVs by 2035, but on Tuesday, Barra said that “GM is well positioned to succeed in an ICE market that now has a longer runway.”

“Despite slower EV industry growth, we believe the long-term future is profitable electric vehicle production, and this continues to be our north star,” she added.

A Stocktwits user opined that an electric vehicle sale slump is “coming soon” and sales will tank.

Another opined that tariffs are going to impact consumer spending as GM tries to offset the massive impact.

GM stock is down by 0.1% this year and up by over 7% over the past 12 months.

Read Next: Crude Oil Prices Tumble Ahead Of Trump’s Tariff Deadline: Here’s What Experts Say

For updates and corrections, email newsroom[at]stocktwits[dot]com.