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U.S. Tariffs Threaten General Motors’ Financial Stability with Potential $4.5 Billion Impact

U.S. Tariffs Threaten General Motors’ Financial Stability with Potential $4.5 Billion Impact

General Motors Company (GM) has disclosed a new risk, in the Capital Markets category.

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The introduction of new tariffs by the U.S. Government, specifically targeting the automotive industry, poses a significant risk to General Motors Company’s financial health. These tariffs, along with potential future modifications and international trade barriers, could materially impact GM’s financial condition and operational results. The company estimates a substantial hit to its 2025 EBIT-adjusted results, ranging from $3.5 billion to $4.5 billion, but acknowledges the unpredictability of the evolving tariff landscape. Efforts to mitigate these impacts, such as adjusting production plans and reducing imports, may not fully offset the adverse effects, potentially necessitating further strategic changes and incurring additional costs.

The average GM stock price target is $71.13, implying 5.68% upside potential.

To learn more about General Motors Company’s risk factors, click here.

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