The impact of tariffs on General Motors (GM) could rise to $4 billion in 2026, according to the company’s own projections.

The 25% tariffs on cars and parts imported into the United States, imposed under Section 232, could raise costs for manufacturers such as GM and affect the automotive economy, disrupting trade relations and putting pressure on global supply chains. 

Tariffs on General Motors

During 2025, the U.S. government, along with other governments, implemented new tariffs relevant to General Motors and its suppliers. These measures included tariffs applied to vehicles and parts imported into the U.S. market, directly affecting the company’s operations.

However, the tariff environment remains highly dynamic. Specific levies applicable to goods imported by GM and its supply chain continue to evolve, including imports made under the United States-Mexico-Canada Agreement, as well as other existing trade agreements.

“We have acted with urgency and discipline to maintain a strong position within the industry,” GM said in its annual report. 

In 2025, the impact on GM’s earnings before interest and taxes (EBIT), adjusted for tariffs, was $3.1 billion. 

Based on the current tariff environment, GM estimates that the impact on adjusted EBIT could range from $3 billion to $4 billion for the year ending December 31, 2026. 

Mexico requested that the United States reduce the tariff applied to cars that do not comply with the USMCA rules of origin from 27.5% to 15%. Economy Secretary Marcelo Ebrard explained that currently, an MFN tariff of 2.5% is combined with an additional tariff of 25%.

Ebrard pointed out that, with discounts for U.S. content, the effective tariff for Mexican vehicles is close to 13%. He added that the United States has already agreed to reductions to a 15% tariff with the European Union, Japan, and South Korea, and preferential treatment for the United Kingdom (a 7.5% tariff for a quota of 100,000 units).

U.S. market

In 2025, the U.S. automotive market exceeded 16 million units sold, reflecting resilient demand concentrated in pickups and SUVs, high-margin segments. The growth of hybrid vehicles offset the slowdown in pure electric vehicles, affected by the normalization of tax incentives. 

General Motors and Ford managed to expand sales through portfolio adjustments, pricing discipline, and cost optimization, despite tariff uncertainty and regulatory pressures on the supply chain.