NEW YORK (AP) — General Motors is expecting a $500 million tariff refund after the Supreme Court struck down some of President Donald Trump's most sweeping levies.
That's boosted the Detroit auto maker's outlook for 2026. On Tuesday, GM said it's now looking to rake in $13.5 billion to $15.5 billion in earnings before interest and taxes this year — up from previous forecasts of $13 billion to $15 billion.
The refund is set to ease the company's total tariff expenses some. GM anticipates paying $2.5 billion to $3.5 billion in tariff costs for 2026, the company said Tuesday, down from an original estimate of $3 billion to $4 billion.
“We are clearly operating in a very dynamic environment, which isn’t unusual for this industry,” CEO Mary Barra wrote in a letter to shareholders. Still, she maintained the company was seeing solid growth and a strong balance sheet "to achieve our long-term goals.”
For the first quarter of 2026, GM reported earnings of $2.63 billion and a revenue of $43.62 billion.
GM confirmed to The Associated Press that it hasn't received the refund yet, and doesn't have a specific estimate for when it will, but $500 million is what it expects following the decision from the Supreme Court. The court in February ruled that the levies Trump imposed using the International Emergency Economic Powers Act, or IEEPA, were illegal.
Companies both big and small are seeking refunds for IEEPA tariffs they've already paid. The Customs and Border Protection agency launched an online system for claims last week.
If CBP approves a claim, it will take between 60 and 90 days for a refund to be issued, the agency said. But the system is being rolled out in phases, and only some tariff refunds will be returned in the first phase.
CBP said in court filings that over 330,000 importers paid a total of about $166 billion on over 53 million shipments.
The now-overturned IEEPA tariffs included so-called “reciprocal” tariffs that Trump slapped on nearly every country in the world a year ago and “trafficking tariffs” on imports from Mexico, Canada and China — as well as separate duties on countries like Brazil and India, all of which the president imposed by declaring a national emergency.
February's Supreme Court decision marked a significant blow to Trump's economic agenda. But many other tariffs remain in effect — including punishing sectoral levies that Trump imposed using another law (Section 232 of the 1962 Trade Expansion Act) on foreign steel, aluminum, cars and other products. And companies like GM are continuing to pay those costs.
The administration has also signaled that more new duties are on the way.
Trump has publicly attacked companies who have warned of price hikes spanning from tariffs — and at times used the threat of new import taxes to strike deals. Last week, the president also said he'll “remember” those that do not seek refunds from his IEEPA tariffs.
“I think it’s brilliant if they don’t do that,” Trump told CNBC of companies that hadn't yet sought reimbursements. “If they don’t do that, they got to know me very well.”
AP Business Writer Mae Anderson in New York contributed to this report.
FILE - The General Motors logo is displayed at its headquarters in Detroit on April 24, 2024. (AP Photo/Paul Sancya, File)
