GM-GENERAL MOTORS CO

Proposed 25% Tariffs Threaten General Motors with Price Increases and Stock Decline

Monday

02 December, 2024

As President-elect Trump proposes a 25% tariff on imports from Mexico and Canada, General Motors faces a precarious future with potential stock declines and significant price increases for vehicles. Can GM's strong market position and focus on electric vehicles help it weather this storm?

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Article Impact Score

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Under­perform
Bear­ish
Neu­tral
Bull­ish
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28
Key Takeaways
  • Potential tariffs on imports from Mexico and Canada could severely affect General Motors' business operations.
  • A significant portion of GM's vehicles are sourced from these countries, making it vulnerable.
  • Analysts predict substantial declines in earnings, raising red flags about profitability.
  • Increased production costs may lead to higher vehicle prices for consumers.
  • Investors are advised to be cautious due to the unpredictable trade environment.

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