10:10 AM EDT, 05/01/2025 (MT Newswires) -- General Motors ( GM ) on Thursday lowered its full-year earnings outlook to reflect a $4 billion to $5 billion hit from tariffs, though the Detroit automaker said it will be able to offset at least 30% of this exposure.

GM now expects adjusted earnings per share of $8.25 to $10 for 2025, compared with $11 to $12 projected under its former guidance, which did not take tariffs into account. The company forecasts adjusted automotive free cash flow of between $7.5 billion and $10 billion, down from $11 billion to $13 billion previously expected.

US President Donald Trump signed two executive orders Tuesday, reducing the 25% tariff rate on imported auto parts and ensuring that such levies don't stack on separate tariffs like those on aluminum.

An expected $4 billion to $5 billion impact from tariffs includes "about $2 billion coming from vehicles we import from Korea as well as tariffs on vehicle imports from Mexico and Canada in addition to indirect material imports," Chief Financial Officer Paul Jacobson said during a conference call.

"Based on the current commercial environment, our updated guidance assumes we can offset at least 30% of this headwind via self-help initiatives," Jacobson told analysts, according to a FactSet transcript.

GM's shares were up 1.1% intraday Thursday. The stock is down nearly 14% so far this year.

Earlier this week, GM delivered better-than-expected first-quarter results and postponed its earnings call to Thursday as it awaited clarity on the tariffs front. The company said at the time that the prior guidance did not contemplate the potential impact of tariffs.

GM said Thursday that it continues to anticipate 2025 capital spending at $10 billion to $11 billion.

"We look forward to maintaining our strong dialogue with the (Trump) administration on trade and other policies as they continue to evolve," Chief Executive Mary Barra said in a shareholder letter. "As you know, there are ongoing discussions with key trade partners that may also have an impact."

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