GM's 2025 Net Profit Plummets 55% Amid Tariff Costs and EV Restructuring

General Motors reported a full-year 2025 net profit of $2.7 billion, down 55% year-over-year, and an adjusted EBIT (earnings before interest and taxes) of $12.7 billion, a 15% decline from the prior year. The earnings decline was primarily driven by two factors: first, the company incurred $3.1 billion in costs related to tariffs imposed by the Trump administration on imported vehicles and parts; second, following the U.S. federal government’s elimination of tax credits for electric vehicle (EV) buyers, GM recorded over $7 billion in asset impairments as it restructured its EV business strategy. Additionally, the company’s pre-tax profit in the North American market fell 28% to approximately $10.5 billion, resulting in profit-sharing checks for hourly workers represented by the United Auto Workers (UAW) union reaching a maximum of $10,500.