In May 2025, how did General Motors respond to an estimated $4 billion–$5 billion annual cost from President Trump’s auto tariffs?
Explanation
GM absorbed $4-5 billion in tariff costs rather than raise prices. CEO Mary Barra pledged pricing would "stay at about the same level" while profit-sharing for UAW workers fell 31-40%.
Sources
- GM CEO Mary Barra: Tariffs will cost us $5 billion, and prices ‘will stay at the same level’
- General Motors to deploy ‘Covid playbook’ to offset $5bn tariff hit
- Business - us Producer Prices Slip August Cheaper Services 2025 09 10 | Reuters
- UAW Cheered Tariffs Now Workers Stand To Lose Thousands | Carscoops
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