GM, the Largest Car Importer to the U.S.

General Motors (GM) surpassed Toyota as the top car importer in the United States in 2024, bringing in 1.23 million vehicles assembled abroad. This figure accounts for nearly half of its U.S. sales, driven by affordable models like the Chevrolet Trax and Buick Envista, manufactured in South Korea.

25% Tariffs Directly Impact Profits

Donald Trump’s imposition of 25% tariffs represents an economic blow of up to $5 billion for GM in 2025. Although the company has sought mitigations, its operating profits could fall by 20%—a significant drop in an already uncertain global market.

Ford and Other Manufacturers Also Face Pressure

Ford Motor Co. estimates its tariff-related costs will reach $2.5 billion this year. Though smaller than GM’s, these costs are forcing the company to implement $1 billion in cutbacks. Only Tesla and startups like Lucid and Rivian are unaffected, as most of their production is based in the U.S.

The Origin of Cars No Longer Defines Their Nationality

The idea that cars reflect their country of origin has become blurred,” explained Erik Gordon, a University of Michigan academic. Many Toyotas are now assembled in the U.S., while several Chevrolets come from overseas plants, such as those in South Korea.

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GM Seeks Solutions Cuts, Relocation, and Trade Deals

GM’s CFO Paul Jacobson announced that the company plans to offset 30% of the impact through cost-cutting measures. Additionally, GM is moving production of key models to domestic plants and is pursuing trade agreements with South Korea to avoid future penalties.

GM Stock Falls While Ford Holds Steady

GM shares have fallen more than 14% in 2025, hurt by tariffs and economic volatility. In contrast, Ford has seen gains on the stock market due to its lower exposure to foreign trade. Still, the industry as a whole faces unprecedented pressure.

Industry Pushes Back and Secures Partial Relief

GM, Ford, and Stellantis imported a total of 2.2 million vehicles in 2024, accounting for 28% of all car imports. Following strong lobbying efforts, the White House agreed to gradually implement tariffs on auto parts and temporarily exempt materials like steel and aluminum, giving manufacturers time to adapt.