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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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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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