The Case for GM: Implications of Trump’s High-Tilt Duty Tax Cuts on the American Automobile Industry, and How Car Sales Are Predicted

is transportation editor with 10+ years of experience who covers EVs, public transportation, and aviation. His work has appeared in The New York Daily News and City & State.

For a better snapshot of how bizarre this is, just look at GM. The nation’s largest automaker was expecting a prosperous year of profits until the tariffs went up. This week, GM pulled its guidance, explaining that any prediction of profits at this point would be “a guess,” according to The New York Times. The company was going to host a conference call with analysts to discuss its first-quarter results but it was delayed to check out the latest developments from the White House.

The auto industry is paralyzed by uncertainty. Stellantis, the parent company of Jeep, Dodge, and Ram, also recently scrapped its outlook for the year, with Chief Financial Officer Doug Ostermann telling analysts, “Most of us are in a period of waiting for a bit more clarity,” according to Reuters.

The lack of clarity was even more stark this week, as Trump signed a new executive order walking back some of the tariffs he had just imposed. Some car imports from Canada and Mexico will no longer be subject to other import taxes if car companies pay 25 percent tariffs. Even though the rules do not appear to prevent them from being hit with tariffs on steel and aluminum that their suppliers pass on to them.

Car companies don’t like this stuff. These companies like to plan years in the future and are interested in using sales predictions and forecasts to decide on factories and models. The foundation of all this is market certainty.

“A US car with all US parts made in the US is a fictional tale not possible today and many factories/production hubs could take 4–5 years to build in the US… and this speaks to the massive frustration from the industry as the rules of the US tariff game are untenable in our view,” Ives wrote in a note.

Analysts have predicted that the auto industry will be hurt by the tariffs, and that sticker prices will increase by as much as $10,000. In response, many panicked shoppers have rushed to their local dealership to get while the getting is good. According to J.D. Power, new vehicle sales are expected to increase in April as buyers try to lock in the right price. According to a survey by Car Dealership Guy, manufacturers promised more price stability throughout the summer.

“We look forward to maintaining our strong dialogue with the Administration on trade and other policies as they continue to evolve,” she wrote. “As you know, there are ongoing discussions with key trade partners that may also have an impact. We will continue to be nimble and disciplined and update you as we know more.”

But the letter doesn’t mention price hikes or panic shopping. She thinks that Trump will bend on tariffs, which has been demonstrated for the past few weeks. She has only one thing she can do right now.

The Impact of the Credit Card Issues on the Performance of the General Motors Company (GM) in the Era of a Financial Conjecture

It’s revenue is up 2 percent year over year, and its making more progress in improving the profitability of its electric vehicle lineup. GM was the number two EV seller in the US according to the company’s president, Mary Anne Barr. With that being said, it is not out of the realm of possibility that GM continues to make progress in this area. Chevy is the fastest-growing EV brand, according to her. And GM is the largest producer of lithium-ion batteries in the US.

The letter was an indication that the automaker needs to tread carefully in order to appease the president while also assuring the investors that it can weather the financial storm. And in that respect, GM says it has a lot of evidence in its favor.