General Motors (GM) is soothing its tariff pain by raising prices on trucks and SUVs.
“Tariffs are getting a little bit better,” CFO Paul Jacobson told Yahoo Finance’s Opening Bid. “I think the important message for the Street is that it’s stabilized.”
Jacobson said the company is leaning on its “track record” of resiliency — pointing to how GM has managed through past crises, such as the pandemic and the semiconductor shortage.
“As we started the year, tariffs were all the noise, and we said that we were going to be able to adjust and work through it,” he said. “Now we’re on track to be able to lean on that track record and ultimately look to a 2026 that could be better than 2025.”
The CFO added that the Trump administration “really wants the US auto industry to be successful.” He cited progress on trade deals with South Korea and potential relief from tariffs with Mexico and Canada, saying, “We think that there’s a lot of opportunity for tariffs to be stabilized.”
Read more: The latest news and updates on Trump’s tariffs
GM now expects tariffs to hit profits by $3.5 billion to $4.5 billion this year, an improvement from earlier estimates of up to $5 billion. The company said new tariff revisions should help offset some of the pain, with savings expected to show up in the fourth quarter as part of broader cost-cutting efforts.
To blunt the impact, GM has leaned on strategic price increases. Jacobson said the automaker has found “opportunities to add content and create value for the consumer” each time it rolls out a new model.
“We’ve got a lot of strong demand that allows us to lean into that and work with our mix, on our trucks and our full-size SUVs to help bring up some of that revenue and that margin performance to help offset [tariffs],” he said.
The comments come as GM’s stock jumped 14% in early trading on Tuesday. The stock is up nearly 24% year to date and roughly 35% in the past 12 months.
The Detroit automaker reported third quarter revenue of $48.6 billion, down 0.3% year over year but beating consensus estimates of $44.69 billion, according to Bloomberg data. Adjusted earnings per share were $2.80, down 5.4% from last year but still topping forecasts of $2.29.
GM also raised its full-year adjusted EBIT forecast to between $12 billion and $13 billion, up from a prior range of $10 billion to $12.5 billion. It now expects full-year adjusted EPS to be in the range of $9.75 to $10.50.
Those figures come with caveats. GM is taking a $1.6 billion charge tied to electric vehicle setbacks, including $1.2 billion in non-cash costs from scaling back EV capacity and $400 million in cash expenses tied to contract cancellations and commercial settlements.
