The next quarter will be worse says CEO Mary Barra.
GM Profit Shrinks, CEO Issues Warning
The Wall Street Journal reports GM Profit Shrinks After $1.1 Billion Tariff Hit
General Motors GM managed to beat analyst expectations Tuesday when it reported second-quarter results, but new tariffs on imported cars and auto parts took a $1.1 billion bite out of its bottom line.
GM’s net income shrank 35% in the second quarter despite strong sales gains at dealerships as President Trump’s automotive tariffs weighed on the largest automaker in the U.S. The company this spring lowered its earlier profit guidance for 2025. Now GM says greater impacts are expected to hit the carmaker in the third quarter, though the company maintained its profit guidance for the full year.
GM has largely held prices steady despite tariffs, choosing to absorb the costs while shifting some production to the U.S. and holding out for trade deals with Mexico, Canada and South Korea that would provide relief. Chief Executive Mary Barra hasn’t ruled out raising prices, however, saying the company will stay competitive.
“We’ve got a longer term plan to be able to mitigate a substantial part of this,” GM Chief Financial Officer Paul Jacobson told investors and analysts Tuesday, referring to tariffs. “We’re obviously looking for things to normalize around these trade deals that will get done, and we expect that will happen.”
In a letter to shareholders, Barra said GM is “positioning the business for a profitable, long-term future as we adapt to new trade and tax policies, and a rapidly evolving tech landscape.”
Tariffs hit GM’s operating income by $1.1 billion in the second quarter. The company’s net income of $1.8 billion was down from $2.9 billion in the second quarter of 2024. GM said few of its tariff “mitigation” efforts, such as making more vehicles at its U.S. factories, were fully implemented.
GM earlier this year said tariffs would add costs of $4 billion to $5 billion—about a third of its pretax profit last year—and that it aims to offset 30% of the tariff bill through actions like adjusting its manufacturing footprint.
Trump in April imposed 25% tariffs on imported vehicles and on automotive parts, though he later softened the blow by exempting most parts from Canada and Mexico and allowing automakers to pay tariffs only on the non-U.S. content in their vehicles assembled in Canada and in Mexico.
GM imports roughly half the vehicles it sells in the U.S., including entry-level Chevrolets and Buicks manufactured in South Korea that have sticker prices under $30,000, as well as full-size trucks and electric vehicles made in Mexico and Canada.
The small SUVs it produces in South Korea, such as the Chevy Trax, still cover their costs of production even with tariffs, GM has said.
Tariff Mitigation Efforts
First and foremost GM is eating the costs.
Trumponomics idiots believe Mexico and Canada will pay the costs.
In general, consumers pay the tariffs or importers pay the tariffs. Toyota is a rare instance where the exporter will eat some of the costs.
As part of its mitigation plans, GM will bring more production back to the US.
What CEO Mary Barra did not say is that the move will add to costs. If it didn’t, GM would not have operations in Mexico and Canada in the first place.
The tariffs are now so onerous that it makes sense to bring production back to the US.
But the bottom line has not changed, GM will have to raise prices or deal with perpetually lower profit, or some combination.
In addition, GM will face higher prices for steel, aluminum, and copper no matter where it produces cars.
Yes, it’s idiotic.
Related Posts
March 13, 2025: The Amazing “Success” of Trump’s 2018 Aluminum Tariffs in One Picture
I hope you can take a bit of headline sarcasm because the true story follows.
May 31, 2025: Trump Will Double Steel and Aluminum Tariffs to 50 Percent
Tariff madness continues.
July 8, 2025: Copper Spikes to Record High After Trump’s 50 Percent Tariff Announcement
This copper tariff is seriously idiotic. And it follows on the heels of idiotic tariffs on steel.
Addendum
A reader commented … “The tariffs are now so onerous that it makes sense to bring production back to the US.” That was the point of the tariffs.
Mish: Yes that was one of the conflicting statements on tariffs. They were also to increase revenue and exports.
Trumps Claims
- Tariffs will increase revenue enough to balance the budget
- Tariffs will bring manufacturing back to the US
- Tariffs will reduce inflation
- Tariffs will increase exports
Conflicting Economic Madness
Points 1 and 2 conflict. Tariffs cannot simultaneously bring back manufacturing and raise enough revenue to balance the budget.
Points 2 and 3 conflict. Since the US is one of the world’s highest cost producer of goods thanks to unions, tariffs will not reduce inflation.
Points 2 and 4 conflict. Since the US is one of the world’s highest cost producer of goods, tariffs will not increase exports.
The US will be the high cost producer of Steel, Copper, Aluminum, cars, everything. A few thousand manufacturing and mining jobs return. Call it 100,000 jobs if you like.
We will lose 1,000,000 jobs elsewhere in the process. Many small businesses will go bankrupt.
There is no advantage to paying the most in the world for Steel, Copper, Aluminum, and cars.
It’s idiotic to try to bring all manufacturing back to the US.
Commenter: “The tariffs are now so onerous that it makes sense to bring production back to the US.”
That was the point of the tariffs.
Mish: Yes that was one of the conflicting statements on tariffs. They were also to increase revenue and exports. Conflicting goals
It was stupid
The US will be the high cost producer of Steel, Copper, Aluminum, cars, everything. A few thousand manufacturing and mining jobs return. Call it 100,000 perhaps.
We will lose 1,000,000 jobs or more in the process.
There is no advantage to paying the most in the world for Steel, Copper, Aluminum, cars.
Note: I added a longer Addendum in my Post
GM doesn’t care where they make the product they exist to make money. Trump is trying to get some more jobs making things but it’s impossible for people to . understand after 35yrs of jobs leaving for a $3 per hour workforce. We don’t want to pay what it actually costs in your real world of dollars. Complaining it costs to much is is ridiculous. Giant corporations have cut labor to the bone to pay themselves salaries and bonuses these people are living in alternate universe.
Calls it is then
Companies will raise prices to balance costs. If that doesn’t work, then employees will be let go. Prices will then have to come down with fewer people able, or unwilling, to buy things.
How does costing the American auto industry billions in profits help them?
It doesn’t.
Stripping them of profits prevents them from making investments in factories or their employees.
“Broken Hearts are for Assholes” Frank Zappa…
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And what the hell do they do with most of their PROFITS, Frosty?
STOCK BUY BACKS
That’s not exactly capital investment in workers.
Reduced profits and higher interest rates will be telling. Stock buybacks will be reduced and stock prices will drop as a result.
“There is no advantage to paying the most in the world for Steel, Copper, Aluminum, cars.” The advantage is that this becomes a consumption tax that pays down the deficit. The alternative is higher income tax rates on all citizens. I like the tax burden shifted from savers/workers to consumers. (Go Trump go.) Are my assumptions wrong here?
Yes, Trump has already paid off the debt. You win.
I also think absent cost changes in the US market (which I agree with you are unlikely), the tariff causes margin compression for foreign companies (as we saw with Toyota – and in foreign ops of US mftrs – GM example). That margin compression becomes US gov income – again good for US savers/workers.
Nope. Margin compression means less profit. Less profit means less taxes paid. So LESS gov income.
Not less US tax if you tariff them… and it’s less income tax in Japan, not in the US.
You are confused. I am not talking about auto makers in Japan. You said tariffs on steel, copper, aluminum and auto parts coming into the US will raise tariff income to the govt. I am simply saying that when automakers pay these tariffs this will also reduce their margins, which will reduce their taxes paid. One offsets the other.
And ultimately, there is only one taxpayer; the US consumer. Companies that pay tariffs or taxes, ultimately get that money from consumers.
Correct Phil. A tariff is just another tax. And all taxes get paid by the US consumer eventually.
She’s been a commie lover for years, she’ll be back kissing China’s ass in no time
I love your impotent comment here, floating without context like a little turdling left adrift after a flush
It’s going to take time for GM to move everything back here because the one thing absolutely DO NOT want to do is move production to Union states. They will want to get their non-union state production going first and then add to that second. They will only go back to union states as a last resort.
So yeah it’s going to take time.
And much lower wages for American workers.
rrright, it has nothing to do with EVs soaking up hundreds of millions and priced in a way where they either sit on lots or are given a metric ton of incentives for cheap 24 month leases.
Mish, do better than this.
Yes. US auto makers suck at EVs. Let’s bring in all the inexpensive Chinese EVs tariff free so the US consumer can buy a decent vehicle for under $20k. Right?
if they can pass safety tests, yes. Our ‘domestic’ carmakers have proven over and over they deserve no protections.
Now if those Chinese carmakers can’t compete due to quality or poor longevity like Ford, then they can sit and spin, too.
AI thinking: higher temp and water shortages in Mexico increased GM production
cost. The highest temp in 2025 was in Iran. Iran also suffers a severe drought.
GM currently isn’t producing cars in Europe, the ME (ex Egypt) or the Gulf states, but Chinese Lyriq ev entered France Switzerland, Germany and Sweden. GM, Ford, Stella, Toyota and Kia will increase production in the US. Thanks AI.
If GM wants to sell cars in the EU, they should have to build them in the EU. Right?
The reason why gm decided to eat the tariff is that they have a competitor in the US market that makes 75% of their cars inside the US and instead of importing 70% of their parts import much less than GM’s. The company I am talking about is Ford. Even Stellantis does better in that metric than GM. Of course Tesla is way above all the others in US content but we already knew that. If GM had passed along the tariff as they wanted they would have been killed by the competition who had made the right decision by keeping as much as the could within the borders.
The principle argument some make here is that the tariff raise prices to the consumer. GM is showing that at least in cars that is not true. I expect now that the same people will lament that tariffs cut companies’ margins thereby hurting them since they can’t raise prices resulting in worse profits resulting in lower stock prices which will cause a huge recession therefore tariffs are bad or something along that line.
Yes, something along that line and they’ll spout off that “TACO doesn’t know what the hell he’s doing.”
In addition, they’ll also say something like “I don’t give a rats ass if GM decides to move production back to the US. It’s going to be a bunch of robots making the cars, and I would rather buy an EV from BYD anyway. America sucks. Did I say TACO doesn’t know what the hell he’s doing?”
GM completely sold out in my book. They’re the poster child of how US manufacturing has slowly been screwed over.
Agree with both of you.
Why do you keep sh*tting on US companies? You probably don’t even buy their product. How does that MAGA?
I’m not a fan of GM. They stopped selling the Volt & cars.
GM sucks, in my book.
Many “foreign” automakers also sell cars in the U.S. with more U.S. content than GM.
Honda has more US content than GM.
See wolf street.com for more analysis.
The tariff cost can be eaten by the US company, the US consumer, or both. How does that make American manufacturing more competitive?
AI thinking: in May 2025 the average GM car sold in the US was: 54,000 up 5.5% y/y.
In Q4 2024: 51,300. The industry average was:45,300. GM changed suppliers as results of tariff. GM cut Chinese components for US production to 3%. Forex: a stronger dollar can reduce components cost. AI, thanks. I hope u are not Googl.
meanwhile: AstraZeneca to invest $50 billion in the U.S. as pharma tariffs weigh
https://www.cnbc.com/2025/07/22/astrazeneca-to-invest-50-billion-in-the-us-as-pharma-tariffs-weigh.html
Does AstraZeneca HAVE $50M to invest? I read that’s like 4x their current CapEx rate.
GM and Toyota are great examples of how tariffs effectively come out of corporate profits. Generally only monopolistic firms can readily pass on costs to consumers, and even then they face reduced sales volume.
Since corporate profits are at a record high as a share of GDP, consumers don’t need to be shedding a lot of tears. And the tariffs also help to expose who has monopoly pricing power. This enables the antitrust squad to finally break some up.
As for “[GM’s] move will add to costs. If it didn’t, GM would not have operations in Mexico and Canada in the first place.” … more is changing than just tariffs. The stated policy intent is to reduce domestic manufacturing costs through regulatory reform, lower energy prices and so on.
There’s obviously danger that reforms won’t be implemented well, increasing damage to the environment or workers’ rights… But it’s equally obvious that Something Must Be Done, because the status quo is not economically sustainable.
Why does something have to be done?
Assuming it does, this is one piss poor effort.
Instead of getting allies to cooperate against China, this idiot is attacking allies and driving some of them closer to Chind.
Now how bleeping stupid is that?
Do you HONESTLY think CA & the EU are going to go hog wild / all in on China everything?
I agree 100% that Trump should be dealing with CA & the EU in a much less confrontational manner, but that’s not his style.
Now if the EU flings opens its car market to cars made by BYD in China, then I’ll stand corrected. If CA does the same, again I will promptly issue a Mea Culpa.
But EVERYONE knows they’re not going to do this. At most, they’re going to do their best to stall & wait out Trump.
BYD already has a dealership in London, and it is selling cars like crazy!
No reason to be an ally of the US any more…
<
I like cheeseburgers. Wicker furniture bothers me.
Anybody can say random things with no connection.
Don’t be like Frosty.
Agree BenW. Past passive approaches have failed. If our “allies” think they are going to get better results in thelong term from selling out to China, I have some bridges available at a deep discount. We have large deficits is the why this needs to happen. No other politician ever has stepped up like this.
Correct. No other politician has ever been this stupid economically.
Oh, London. Got it. The UK isn’t exactly the bastion of EV technology advancements. And that’s not exactly the total embrace that I’m talking about, Frosty.
The UK is broke, and will but anything from anyone who is selling on the cheap.
I can think of Two Huge reasons for the UK to be an ally of America. NG & Security. Is the UK going to build another pipeline? Do they even have the money and technology to do so now? Thinking it won’t get destroyed again is rather naive, don’t you think?
How about those Pagers that blew up? Much easier for a Car don’t you think?
UK is blowing smoke, in hopes Trump will cave. He isn’t caving, because He doesn’t have to, but the UK will, but now they will need to offer even more… Not too bright!
“ The stated policy intent is to reduce domestic manufacturing costs through regulatory reform, lower energy prices and so on.”
How will 50% tariffs on steel, copper and aluminum, and 25% on auto parts reduce domestic manufacturing costs?
AI thinking: GM increase production in the US, while cutting jobs in Mexico. Demand for United Auto Union workers will rise. GM incentives are smaller than Ford and Stella to maintain profitability and stability. GM scaled back ev production and capex. Cadillac Optiq ev produced in Mexico is sold in the US. AI, u are not an idiot, thanks.
So replace lower paid workers with higher paid workers. How does that make GM more competitive against foreign automakers?
GM can get right back into the game with a few things needed to get done.
1. “Buyout Offers” to All Workers (Offer End Date Announced). This will grab a lot more done this way.
2. Those left, depending how many or how few, will face a “Layoff” and perhaps large in size (Announced). This will grab the attention of longer term workers.
3. Workers left, will face reductions in pay of roughly ?% (Announced Date). Upon the Transition to EV Production, a further cut of roughly ?% may additionally be needed. This will have the skilled (not needed), higher paid (not needed), amongst others jump quickly. Place a limit on qty. perhaps?
4. More to come as we continue to work on getting through this transition.
Still a lot to be done, but They would be wise into, to set the table before dinner comes into play. For an earlier dinner perhaps, you would have a bit more time to adjust, and know how the table needing to be cleared off, will be easier with it set already…
They best get moving, I would strongly recommend…
So we make America Great by making workers work for minimum wage?
“But the bottom line has not changed, GM will have to raise prices or deal with perpetually lower profit, or some combination.”
The question begged: IS this the point and more importantly ARE THE CAR MAKERS able to build USA AUTO’s that are competitive with Japan and Korea?
Likely not.
If demand for blue collar workers will rise their wages will rise. AI stars contracts
reached $100M with incentives.
You won’t have any “corporations” to buy your “AI” or hire your “blue collar workers”.
Sorry, I am an idiot. I will ask my AI thinking.
No argument here, your ramblings are incoherent in the main
Increases in wages will not make US automakers more competitive.
Margin compression works up to a certain point. After that point it makes business sense to manufacture in the US. Historically speaking, that point is reached at between 15-25% tariffs depending on the sector.
Proof?
GM cannot raise prices, or they might as well fold up shop. They need to find ways to lower cost, or end up folding shop as well. The EV was the “Golden” answer for allowing U.S. Manufacturers to be more competitive. Labor as one of your fixed cost and highest as well needs to change. The EV was going to allow them all to layoff the skilled workers and long term workers, which are your highest cost labor pool. A fraction of skill is required and therefore turnover imminent. That’s what generally occurs with cheap labor so to speak. The EV stall was devastating to the industry being able to be more competitive, by not doing much, and by not changing much at all. Just a top labor pool, not required with new technology, wipe out. It’s going to happen regardless if they do it now or later, so now works best!
Not sure the last question about competing against Japan and Korea matters in this discussion regarding price increases due to tariffs.
If they don’t manufacture in the USA they will pay high tariffs to sell here so they won’t get any price advantage over domestic production. So in the end all that will happen is say a 25K car will become a 30K car due to making it here in the US. The same Japanese/Korean car that’s made there and sells here for 25K will also cost 30K due to tariffs.
Hey TT, seeing as how making it in America, has been considered a security risk not to, then can the States get a Fed Rebate by population, for the higher cost to do so?
The caveat being that it must be spent on Technology to solve the issues needed to get ahead.
Trying to Think outside the box…
So no exports because we will not be competitive. Right?
“ ARE THE CAR MAKERS able to build USA AUTO’s that are competitive with Japan and Korea?”
Not if Trump keeps raising their input costs on copper, steel, aluminum and auto parts.
And in Related News:
The esteemed & always trustworthy WSJ is now reporting that TACO may be onto something:
Forget TACO. Trump Is Winning His Trade War. – WSJ
“First and foremost GM is eating the costs.”
Given that there’s no sign of tariff related inflation, it sure as hell seems like a lot of importers / exporters /producers are pulling a GM & eating the tariffs.
How is this bad for the consumer, especially when GM is still making $1.8B in one quarter?
Go cry me a river, Barra.
Why don’t you think instead of being a Trump parrot?
Again, Mish, Trump is trying to complete a major restructuring of US trade & manufacturing. I agree with some of your points and disagree with others.
I’m not making CRAZY comments. I’m making comments that are aligned with Trump’s agenda. In addition, I have repeatedly stated that I’m not a fan of his process / messaging. I have a good bit to be critical of him about just like you. The difference is that I believe the end justifies the means. You don’t which is fine.
All of this would have gone a lot smoother had he separated our trading partners into these groups:
China
Mexico
CA & EU
Everyone else
If he was committed to placing tariffs, he should have given each group a starting amount with a monthly or quarterly increase. Obviously, China’s rate would have been the highest.
I agree that enormous tariffs are bad, especially on imported metals. However, the wheels haven’t fallen off yet, and the economy is chugging along fine. And whether you or any other Trump hater here will ever admit it, Trump is doing what has to be done: slowly removing out dependence on China.
Oh, and it’s widely reported that REM from China are up over 660% in June. Like it or not, that’s winning.
Again for the millionth time, it’s not going to be easy and isn’t going to happen overnight.
I’m not parroting Trump, but you have every right to think that I am.
We’ll just agree to disagree.
Once a normal politico is elected as the next President, everything will return to how it was before. Most of what Trump implements will be rescinded or removed.
“ Oh, and it’s widely reported that REM from China are up over 660% in June. Like it or not, that’s winning.”
Hahahaha! That’s f*cking hilarious!
The US has been restricting high end chips and chip equipment to China for over 3 years now. China didn’t blink
Then in April, China started restricting rare earth shipments. Within 2 months, Trump completely caved in on chips to China.
That’s not winning. That’s kissing China’s ass.
Hahahaha!
660% is not losing.
And I’m not saying China blinked. They just opened up the REM exports to the US for now.
This REM situation is going to take years to remedy. But let’s give credit where credit is due. At least Trump has got the US moving in the right direction.
YOU ACT LIKE THE STATUS QUO IS THE ONLY WAY TO MAINTAIN COMPETITIVENESS. COMPETITIVENESS IS THE ONLY THING YOU CARE ABOUT. GLOBALISM IS ON THE WAY OUT. CHINA IS THE ENEMY OF WESTERN SOCIETY. SELF SUFFICIENCY IS THE FUTURE.
P.S. I’m totally fine with cutting China off from our chips. This forces them to develop their own which they are doing. If they’re going to be the BIG DAWG that replaces us, then it’s about damn time they develop their own chips and stop freeloading off NVIDIA.
And when their chips are better than ours, that’s when we all might want to pull our money out of the stock market.
Lol! Of course it’s losing. The only reason they cut off rare earth’s two months ago was to get Trump to cave. Trump caved on 3 years of chip restrictions after just two months of rare earth restrictions. Two months! Hahaha!
China spent the last two decades becoming the world leader in many areas that are increasingly important for the future. Rare earths, renewables, batteries, EVs, etc. There are two reasons. Profits and leverage.
They want to dominate us and sell us these products and profit from them. But they are also willing to cut them off if necessary.
So now China is shipping rare earth’s again. Back to status quo. They can now make their profits again. And we have learned that they can cut them off anytime they need leverage again.
And we are back to being dependent on China for REM. That’s not winning.
Let’s see. With Trump’s charm offensive, we lost the war with Canada. The nicest people on the face of the earth now hate our guts. They’re not going to become the 51st state. And then we lost Greenland. Of all people, to mighty Denmark. And then in Ukraine, reality kicked our asses. If Ukraine’s rare earth elements could be viably mined, China would most likely already own them.
It’s crazy to think that increasing the cost of inputs like steel, copper and aluminum will make US manufacturing more competitive against foreign firms that don’t have those costs.
I’ve never said they would, and I guess you missed me saying this above:
I agree that enormous tariffs are bad, especially on imported metals.
Yet you think tariffs on imported metals won’t affect manufacturing jobs in the US.
If you look at the goods that actually use the raw material/parts on which tariffs are imposed, they are inflating. It’s offset by declines in business activity in other areas. Neither are good.
Yeah sure. Tariffs may have a negative effect on thier earnings.
But I would bet they are kitchen sinking all the losses from their idiotic pursuit into EVs and blaming it on the tariffs I am sure
I don’t need your kitchen sink. I need you to prove your statement that the 1.1 billion profit reduction was not a result of the tariffs.
You applaud the tariffs that the US govt is currently collecting. Who do you think is paying those tariffs to the govt? Companies like GM. Which reduces their profit.
“The tariffs are now so onerous that it makes sense to bring production back to the US.”
That was the point of the tariffs.
Commenter: “The tariffs are now so onerous that it makes sense to bring production back to the US.”
That was the point of the tariffs.
Mish: Yes that was one of the conflicting statements on tariffs. They were also to increase revenue and exports. Conflicting goals
It was stupid
The US will be the high cost producer of Steel, Copper, Aluminum, cars, everything. A few thousand manufacturing and mining jobs return. Call it 100,000 perhaps/
We will lose 1,000,000 or more in the process.
There is no advantage to paying the most in the world for Steel, Copper, Aluminum, cars, everything.
“We will lose 1,000,000 or more in the process.”
That’s speculation. Like I say to PapaD all the time, time will tell.
Mish is correct. There are far more jobs at risk in manufacturing compared to possible job gains in resources like copper, aluminum and steel. In addition, the possible resource job gains are years away, as it will take a long time to build new production. While the tariff costs and manufacturing job losses are more immediate.
Again, you and Mish are both speculating. Neither of you have some guaranteed Oracle view into the future. Thus far, you’ve both been quite wrong in my book.
There’s nothing you can say to make me believe that your apparent embrace of the globalist status quo is the answer for a prosperous American future.
Now, I’ll be the first to admit that TACO’s crappy process / messaging for implementing his tariff policies could very well backfire.
Like we’ve said many times already, time will tell.
Next up. What does TACO do on 8/1/2025?
Nope. It is YOU that is speculating. Over and over again. I deal with facts. You deal with wishful thinking.
Fact. There are 12.75 million US manufacturing jobs vs 800,000 jobs in steel, aluminum and copper production.
To increase jobs significantly in steel, aluminum and copper will take a lot of investment in new production, which will take many years to build. Or do you think Trump can snap his fingers and new production facilities and lots of jobs come online tomorrow?
But 50% tariffs on steel, aluminum and copper are happening NOW. This increases costs for US manufacturers, making them less competitive NOW. Which will cost jobs NOW. What part of that do you not understand?
“ Thus far, you’ve both been quite wrong in my book.”
You have said this before. And I asked you specifically, what I have been wrong about? Yet you won’t say.
If you won’t say what I am wrong about, then shut the f*ck up.
Those are not conflicting goals, they’re multiple prongs of a coherent goal. Increased domestic production also improves the federal deficit, probably more so than tariff revenue.
Trade barriers are bad in general, but asymmetric trade barriers are worse.
Lol! Two questions.
How will it improve the federal deficit? As an example, GM’s profits and taxes paid are already lower, and are only going to get worse as they attempt to bring back more domestic production.
Trump is creating large asymmetric trade barriers. Isn’t that worse?
All it means is that GM doesn’t get to spend $1.1B in freaking stock buybacks in one quarter.
Who gives a rat’s ass about that other than GM stockholders?
I know I don’t. I bet most people don’t. I bet GM’s average Joe employee who doesn’t own any or much GM stock cares at all. They’d rather see GM put that money into building US R&D and manufacturing capacity. They’d rather see GM not let go so many employees.
Is that all you ever do? Try to change the subject since you cannot answer the question.
Again. How does reducing GM’s profit improve the federal deficit?
Increased domestic production means well-paid domestic manufacturing employees paying domestic income, sales and property taxes. It means more spending on local services as well, resulting in additional taxed income.
Provided profit margins are not so high as to siphon all the income into billionaire’s hands too quickly, there will also be a multiplier effect as those increased incomes and expenditures slosh around.
As for your second question, I don’t see asymmetric barriers … I see a damaged playing field getting a long overdue leveling. The United States was once the world’s largest exporter. Those days don’t need to return but we should not be exporting ~1% of total national wealth every year as we have been for many years.
Agreed along with add incremental revenue and force trading partners to lower their tariffs & trade barriers.
Let’s see what happens on August 1st. Trump does have the TACO moniker for a reason. If he follows through, then we will definitely move into that phase whereby increased costs will most likely start to be widely passed onto the consumer, causing inflation to rise by some amount.
If this comes to pass, the question is can Trump & the American consumer outlast China & Mexico?
Lol! Outlast China and Mexico!
The US had restrictions on chips and chip equipment to China for over 3 years. China barely blinked. China got Trump to reverse the policy with just 2 months of rare earth restrictions. Two months!
Trump always talks tough but blinks first. Trump is such a big pussy, he probably grabs himself.
You keep using chips & REM as the sole means of determining how well China can fend off TACO’s tariffs. I could care less about our selling chips to China. REM is another story. But both are a harbinger of what’s to come. American companies need to get the message and get the hell out of China. They’ve stolen all of the IP they need to make everything we’ve sold them. Some one clue Tim Cook in & spell out what’s happening:
Apple appears to be losing about 1% market share per quarter. Get the hell out, Cook!
Apple loses top 5 spot in China smartphone market as domestic brands dominate
CHINA IS THE ENEMY JUST LIKE THE SOVIET UNION WAS BACK IN THE DAY.
The only difference is that China is a much more complete enemy both militarily & economically than the Soviet Union ever was.
Lol!
First. Go back and look at your post. YOU are the one that mentioned renewed REM shipments as a big victory. I am merely explaining how China used our dependence on REMs to get Trump to cave on chips. That is not a victory. That is just China resuming shipments we desperately need after getting Trump to cave on chips.
Second. I am not cheering for China. I am merely explaining how they have successfully executed a multi-decade plan to dominate areas of future importance, and in particular, all areas related to an electrical future; REMs, solar, wind, nuclear, batteries, EVs etc.
I simply deal with reality while you deal with childish wishful thinking.
Thank you TACO as the impact of the tariffs is starting to hit the fan.
Speaking on the behalf of Trump, “you’re welcome, Tony!” If you bought a GM product made in CA or MX in the last quarter, you didn’t have to pay extra for it, but Barra was nice enough to pay the tariff for you.
Winning! MAGA!
I’m going to CAP, bold / emphasize this:
[AND WHAT DOES THIS SAY ABOUT GM’S PROFIT MARGINS? THEY’RE PAYING THE 25% TARIFF AND STILL RETAINING 67% OF THEIR PROFIT? AND THAT’S WITH HIGH LABOR & BENEFITS COSTS.]
So if you did buy a GM truck or SUV last quarter, then I’m going to suggest you’re a sucker for paying so damn much for the vehicle.
“AND WHAT DOES THIS SAY ABOUT GM’S PROFIT MARGINS?”
And the same with many companies, especially on Wall Street. So many complain they are not making money, our margins are only 1%, 2%, 5%, etc. and IM, this is mostly BS. But upper management in almost every company all appear to live in good zip codes with relatively high housing costs.
Someone should do a study on this.
Did you honestly expect them to live on the wrong side of the tracks?
Let’s summarize your comments from those two posts.
It Makes America Great if US companies pay the tariffs instead of American consumers. (Didn’t you say that other countries pay the tariffs?)
You don’t want US companies like GM to make profits or be successful. (Perhaps you would prefer if they lose money and go out of business? How is that MAGA?)
You think people who buy a car from an American company are suckers. (Which means you must buy from foreign competitors. How will that Make America Great Again?)
You don’t want US auto workers to make a good wage. Would you prefer minimum wage? How will making more workers poorer Make America Great Again?)
It seems like you don’t really want to Make America Great Again. You seem to want the opposite.
I have said MANY times that these groups can absorb tariffs:
Producer, exporter, importer, retailer & consumer
The vast majority of tariffs to-date outside of cars coming in from MX & CA have been absorbed by the foreign producer or exporter. It’s that simple. Otherwise, inflation would be shooting higher. Maybe we’re still living off frontloaded purchases from Dec – Mar? Come August if TACO follows through, then all bets are off.
As for GM profits, I’m simply pointing out the obvious: their vehicles are grossly overpriced. That’s undeniable.
I don’t buy new cars. Their bad investments, but yes someone who pays Ford or Tesla $100K for an EV truck is a sucker in my book. But they can afford it, so no harm no foul in the grand scheme of things. But I’m never going to defend a company like GM who killed the Volt & stopped making sedans for max profit. Nor am I going to defend Tesla who’s run by a bunch of engineers that know nothing about strategic MASS MARKETING. Both of these companies exist only to enrich their shareholders.
I’m fine with autoworkers making a good wage, but I just don’t believe in unions. In general, I’M ALL IN ON EVERYONE IN THE USA (INCLUDING MYSELF) TAKING A PAY CUT OF SOME SORT. Some will take a bigger pay cut than others, but it’s the only way we dig ourselves out of a $2T annual deficit. Eventually, this will come to pass. Even the rich are going to take a pay cut, when the S really hits the fan. Ammo, batteries, solar panels & water purification will be the currencies that matter, when this happens.
What I want is for America to not have to depend on China for anything that’s strategically important to our economy & national security. And we don’t get there sitting on our ass doing nothing about China.
THAT’S MY DEFINITION OF MAGA!
Your mileage may vary.
Nice chat, PapaD!
“ The vast majority of tariffs to-date outside of cars coming in from MX & CA have been absorbed by the foreign producer or exporter.”
1. Wishful thinking. Prove it.
2. Foreign exporters don’t pay the tariff. US companies do.
“ What I want is for America to not have to depend on China for anything that’s strategically important to our economy & national security. And we don’t get there sitting on our ass doing nothing about China.”
China? China is just 5.9% of total US trade. What about the other 190 countries we trade with?
In 2025 so far imports are around 2.5 trillion dollars. NavaOreo brags that the White House has stolen 104 billion from Americans’s after-tax money. They paid their federal taxes on which they had representation last April. Americans paid the tariffs on ~612 billion in imports; that’s the only way 104 billion of Americans’s after-tax dollars made it to an account at the U.S. Treasury. Approximately 1 trillion of the 2,5 trillion came in before many of the tariffs were imposed, and a significant percentage of all imports are duty-free. Which implies a major percentage of tariffs are being stolen from the American people and are not being eaten by nonAmericans. .
Another kick in the teeth for the non-rich. How much will they put up with?
How about due to their products and prices?