American automaker General Motors (GM) said Thursday that it could cut the tariffs on President Trump by just as much $5 billion from this year's profit.
In a letter to investors, GM CEO and Chairman Mary Bala said her company “had been ongoing discussions with the president and his team even before taking office.”
“They invested their time in understanding what it takes to succeed in this capital-intensive and highly competitive global industry, how to work together to grow American manufacturing, and the importance of companies like GM to communities across the country,” she added.
Barra also said that, taking into account “the positive impact of this week's administration's lawsuit, the company expects $100 billion and $12.5 billion in profits and taxes this year, with a loss of $4 billion to $5 billion from the president's tariffs.
On Tuesday, the president signed an executive order to retract 25% tariffs on imported cars and auto parts, and came into effect on Saturday. The administration eases foreign auto parts from experiencing double hits due to Trump's car rates and previous tariffs on foreign metals, and the US will charge the highest possible fee for the product.
Automakers are also allowed to request a price offset of 15% within the first year of customs duties, and 10% is allowed to be offset by the following year.
“We look forward to maintaining a strong dialogue with the administration on trade and other policies. They will continue to evolve. As you know, we have continued discussions with key trading partners that may have an impact.
