The Trump administration’s tariffs on imported cars and auto parts will cost General Motors between $4 billion and $5 billion this year, as the nation’s largest automaker slashed its earnings projections.

General Motors on Thursday slashed its full-year forecast as its CEO Mary Barra warned of “a current tariff exposure of $4 billion [to] $5 billion.” The company, which owns brands including Chevrolet,

GM chief executive Mary Barra walked a tightrope in a letter to shareholders Thursday that sounded upbeat — but also warned that tariffs could cost the company as much as $5 billion this year. She praised the Trump administration while highlighting the challenges GM faces in new economic headwinds from tariffs.

General Motors cut its 2025 profit forecast on Thursday after receiving some clarity and a reprieve from the White House this week on automotive tariffs. CEO Mary Barra told shareholders in a letter that the company would maintain dialogue with the Trump administration on trade and other policies as they evolve.

General Motors warned Trump administration auto tariffs will have a negative impact of $4 billion to $5 billion in full-year profit.

General Motors cut its outlook for the year to account for an estimated $4 billion to $5 billion impact from the Trump administration’s automotive tariffs.