GM lost US$1.1 billion due to Trump tariffs

We have reached the middle of the year and with it also arrives the traditional release of financial results for the first half of the year. The most recent was that of General Motors, which recorded a drop of US$1.1 billion in revenue compared to the same period in 2024, directly attributed to tariffs imposed by the current United States administration.

Still, GM surprised by surpassing market projections and achieving record revenue of US$91 billion in the first half of the year, driven by strong demand in April and May. According to the automaker, many consumers anticipated purchasing vehicles in the second quarter to avoid price adjustments expected as a result of the tariff. SUVs drove this movement, with emphasis on the Chevrolet Equinox, which saw 20% growth in sales compared to the previous year.

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Fonte: Chevrolet

During the earnings call, CEO Mary Barra and CFO Paul Jacobson demonstrated confidence, even in the face of incisive questions from analysts about the continued impact of tariffs and the loss of competitiveness of electric vehicles after the end of tax incentives in the US.

In the electric segment, GM highlighted the good performance of Chevrolet, which took second place in national sales of EVs in the second quarter, while Cadillac rose to fifth place among luxury brands.

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Source: Motor1.com

Despite the market slowdown, the company’s leadership maintained its optimism speech. “Despite slower growth in the sector, we believe the future lies in the profitable production of electric vehicles,” said Barra. “We will prioritize our customers, brands and maintain a flexible manufacturing structure to adapt to demand.” completed.

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Source: Motor1.com

Silverado and Equinox will change nationality to escape tariffs

And speaking of tariffs, even though it is a group with extensive production in the United States, General Motors already estimates that the new fees will represent an impact of up to US$5 billion in 2025, with US$2 billion coming only from imports from South Korea, where models such as the Chevrolet Trailblazer, Chevrolet Trax, Buick Encore GX and Buick Envista come from. The automaker is working to mitigate these effects with changes to its industrial strategy, but recognizes that these actions will take time to have a real effect.

One of the immediate responses to the tariffs promoted by the Donald Trump administration – which foresees taxes of up to 30% on imported vehicles and components – will be the transfer of part of the production currently carried out in Mexico to the United States.

Fonte: Cadillac

Starting in 2027, models such as the Chevrolet Silverado, GMC Sierra, Cadillac Escalade, Equinox and Blazer will be produced in factories located in Michigan, Kansas and Tennessee. The operation, announced by the automaker on July 15th for the Automotive Newsis part of a US$4 billion investment package to reinforce the company’s production capacity on North American soil.

Chevrolet Silverado High Country

Photo from: Motor1.com

Photo by: Mario Villaescusa / Motor1.com

Change could affect Brazil

Although the announcement does not mention whether the operation in Mexico will be completely interrupted, the measure should mainly affect two products currently offered on the Brazilian market. This is the case with the Silverado pickup truck and the Equinox midsize SUV.

Both models arrive in the country today benefiting from bilateral agreements between Brazil and Mexico that guarantee exemption from import taxes. If they start to come from the USA, the models will lose this benefit and will be taxed like any extra-Mercosur import.

This means that the prices of these vehicles, which are the most expensive imported combustion engines from the American brand, could rise even more. Today, the Silverado starts at R$573,590 in Brazil, while the new Equinox, launched here in 2024, starts at R$285,490 in the RS and Premier versions.