The net profit attributable to stockholders of General Motors (GM) slumped 35.4 percent to over 1.89 billion U.S. dollars in the second quarter of 2025, as tariffs cost the U.S. automaker 1.1 billion U.S. dollars in the quarter.
GM's revenue in the second quarter declined 1.8 percent year on year to 47.12 billion U.S. dollars, still topping the market's estimate of 45.84 billion U.S. dollars, according to the second quarter performance report released by GM on Tuesday. GM is anticipating the gross tariff impact this year to be unchanged at 4-5 billion U.S. dollars.
In a letter to shareholders on Tuesday, GM CEO Mary Barra said the company is attempting to reduce tariff exposure by making new investment in its U.S. assembly plants.
Through manufacturing adjustments, targeted cost initiatives and consistent pricing, GM aims to mitigate at least 30 percent of the expected cost increase due to tariffs.
Last month, GM announced plans to invest about 4 billion U.S. dollars over the next two years in its domestic manufacturing plants, aiming to boost U.S. production and address U.S. President Donald Trump's tariffs imposed on imported vehicles and parts.
However, as some of GM's products are manufactured in South Korea and Mexico, the company could face tariffs from these countries if an agreement regarding tariffs is not reached before August 1.
The Trump administration imposed a 25 percent tariff on imported vehicles on April 3.
According to the non-profit Center for Automotive Research, a uniform 25 percent tariff on all trading partners would have an increased cost of 107.7 billion U.S. dollars to all U.S. automakers and an increased cost of 41.9 billion U.S. dollars for the Big Three automakers -- GM, Ford and Stellantis.
GM net profit slumps over 35 pct amid tariff impact in Q2
Officials from the European Union (EU) and Finland have voiced concerns after the White House said it has been discussing "a range of options" to acquire Greenland, including the use of the military.
EU foreign policy chief Kaja Kallas told a press briefing in Cairo on Thursday that the message from the U.S. is "extremely concerning," and "not really helping the stability of the world."
Kallas called on all parties to stick to international law, adding that relevant response measures has been discussed among EU members.
"The international law is very clear, and we have to stick to it. It is clear that it is the only thing that protects smaller countries, and that is why it is in the interest of all of us. And we discussed this today, as well, that we uphold the international law on all levels," she said.
Finnish Foreign Minister Elina Valtonen on Thursday described recent remarks by U.S. President Donald Trump and members of his administration on Greenland as "worrying," while reiterating Finland's support for Denmark and Greenland's right to self-determination.
"Finland and the other Nordic countries have exceptional expertise in Arctic conditions, and we are happy to make use of that together with our North Atlantic Treaty Organization (NATO) allies to strengthen Arctic security, but it cannot be done by threatening allies," she said at a press conference at Finnish parliament after an extraordinary meeting of the parliamentary Foreign Affairs Committee.
Johannes Koskinen, chair of the Foreign Affairs Committee, said it was "unprecedented" for threats of violence to be made within NATO against another member in connection with seizing territory, adding that such threats run counter to the United Nations Charter and that their inconsistency with international law should be underscored at all levels.
EU, Finnish officials express concerns over US remarks on Greenland
