Why GM Is Sinking Today

General Motors (GM) is falling 8% today after the automaker provided higher-than-expected 2025 profit guidance, but stated that its outlook excludes the impact from the tariffs that President Donald Trump is expected to impose.

Additionally, GM CEO Mary Barra suggested that she had discussed the negative impact of tariffs with the president, but did not appear to indicate that their talks on the matter had changed Trump’s mind about imposing the duties.

An auto warehouse filled with newly acquired used cars.

GM’s EBIT Guidance Did Not Include the Impact of Tariffs, Barra Weighs in on the Issue

GM provided 2025 adjusted EBIT guidance of $13.7 billion – $15.7 billion, well above its previous outlook of about $14.9 billion. The updated guidance was also higher than Wall Street’s average estimate.

However, the automaker noted that the new guidance excludes the negative impact of the 25% tariffs that Trump has threatened to impose on Canada and Mexico. GM has five major factories in the two nations.

Meanwhile, Barra told Yahoo Finance that she had spoken with Trump about tariffs and reported that he “very much understands exactly what the ramifications will be [of the duties].” But none of her comments quoted by Yahoo Finance indicated that the president would refrain from imposing steep tariffs in the near future.

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Disclosure: None. This article is originally published at Insider Monkey.