Mary Barra, the Chair and CEO of General Motors (NYSE: GM), recently engaged in talks with President Trump about the effects of tariffs on the automotive sector. She emphasized the company’s dedication to planning ahead and mitigating the impacts of these tariffs. This conversation follows GM’s comprehensive scenario planning initiatives aimed at addressing potential tariff challenges.
Since their meeting on March 13th, GM’s stock has seen an increase of 11.63%, reaching a price of $52.59, with the year-to-date performance showing GM outperforming the overall market—recording a gain of 2.37% compared to the S&P 500’s decline of 1.57%.
Barra emphasized the administration’s commitment to bolstering a strong manufacturing industry, and expressed her belief that President Trump understands the wider economic consequences of tariffs. Despite ongoing discussions about tariffs, General Motors has provided strong financial guidance for 2025, forecasting earnings per share (EPS) between $11 and $12, exceeding the consensus estimate of $10.75. This forecast is based on the assumption of a stable policy landscape, free from further tariff disruptions.
The automotive sector is a major player in global trade, with 26% of imports from Mexico and 12% from Canada associated with the industry. GM is a key contributor, manufacturing profitable pickup trucks in Mexico and depending significantly on both Mexico and Canada for its electric vehicle production, supported by five major assembly plants located in these countries.
Name
Price
Target low price
Target high price
Target mean price
GM
General Motors Company
$47.90
$37.00
$105.00
$61.81
Rival Ford (NYSE: F) also has a considerable manufacturing footprint in the area, producing around 12% of its goods in Canada and Mexico.
As General Motors strategically manages the challenges posed by tariffs, it remains carefully hopeful about future policy continuity and its financial prospects.