GM withdraws annual forecast citing tariff uncertainty despite strong quarterly sales

General Motors (GM) withdrew its 2025 financial forecasting model because of unpredictable trade warfare from President Donald Trump's global trade policies even though the company achieved strong results in the first quarter. Before official market opening GM's stock value declined by 2.6%. GM delivered its January prediction of a yearly net income between USD 11.2 billion and USD 12.5 billion without considering possible automotive tariffs.

GM CFO Paul Jacobson declared that future tariff data remains too unclear for stakeholders to depend on previous forecasts because GM will update those estimates once better information about tariffs becomes available. GM decided to stop its share repurchase program until it gains sufficient understanding of how the economy will develop.

GM generated revenue exceeding expectations by reaching USD 44 billion throughout the first quarter with a 2.3% rise from the previous period. Consumer buying patterns intensified because they wanted to beat any expected price increases toward the end of the year. The reported adjusted earnings per share amounted to USD 2.78 which surpassed expert predictions. During the period the company reported a 6.6% decrease in net income which amounted to USD 2.8 billion.

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The company modified its analyst call which provides an update on earnings results and yearly guidance for Thursday May 1st as a result of recent trade policy news.

The implementation of 25% auto tariffs by Trump since early April will lead to estimated losses of USD 108 billion for American automotive industries during this current year. The Trump administration plans to disclose measures which will reduce some tariff effects on Tuesday although the broader impact remains unclear.

Due to unpredictable tariff policies many well-known companies have stopped issuing annual projection statements. Consumer confidence levels suffered deterioration starting in the middle of February after the emergence of heightened trade barrier threats. Tesla joined numerous other companies by omitting guidance during its last quarter results announcement.

Interestingly, GM noted some positive developments in China, where its restructuring efforts led to equity income of USD 45 million, a significant improvement from a USD 106 million loss in the first quarter of 2024.

GM's strong first-quarter sales, mirroring an overall increase in U.S. auto sales, suggest that the looming tariffs may have spurred some consumers to make purchases earlier than planned, potentially fueled by deeper discounts offered by automakers like Ford and Stellantis. Jacobson acknowledged this "pull-ahead demand" in March, noting that strong demand has continued into April.