General Motors, the largest automaker in the United States, has alerted that the tariffs imposed by President Trump could result in losses of up to $5 billion.

Mary Barra, the CEO of General Motors, informed shareholders that the company now anticipates its annual adjusted earnings to fall between $10 billion and $12.5 billion, a reduction from the earlier forecast of $13.7 billion to $15.7 billion.

The new profit outlook factors in a “current tariff exposure” estimated between $4 billion and $5 billion.

While cautioning stakeholders about a potential decline in profitability, Barra expressed appreciation for President Trump’s backing of the American automotive sector.

She emphasized that the company intends to maintain engagement with the Trump administration regarding trade and various policies.

“Discussions are ongoing with significant trade partners that could also influence our situation,” Barra noted in her correspondence with investors.

Recently, Trump eased his position by providing tariff exemptions for car manufacturers to alleviate some of the harsh import duties.

He remarked that he was “giving them a little bit of a break,” adding, “I want them to produce parts domestically, but I allowed some leeway.”

“We give them a little time before we take decisive action if they do not comply as expected,” he stated.

Barra mentioned that the company’s revised forecast takes into account “the positive impact of the administration’s initiatives.”

Addressing shareholders, she remarked: “Nearly one million Americans rely on General Motors for their jobs, which include our employees, suppliers, and dealers,” noting that GM operates 50 manufacturing plants across the country. The company’s brands include Chevrolet, Buick, Cadillac, and GMC.

“We have invested $60 billion here over the past five years. Our business is expanding, and we are committed to growing our investments in the future,” she added.

GM’s cautionary statement comes at a time when Harley-Davidson has also paused its annual projections amid challenges posed by the ongoing trade conflict.

The demand for recreational vehicles in the United States has significantly declined, as many consumers are reevaluating their buying decisions in light of an unstable economic climate.

Harley-Davidson announced it would navigate through the current economic landscape by implementing cost reductions, minimizing risks in its supply chain, controlling operational expenditures, and decreasing dealer inventory.

Another competitor, Polaris, known for its Indian motorcycle brand, also retracted its annual sales and profit projections earlier this week, citing the negative impacts from diminished consumer demand and ongoing tariffs.