General Motors Chair and CEO, Mary Barra, has expressed support for the Trump administration’s automotive tariffs, asserting that these measures allow U.S. automakers to compete more equitably in the global market. Speaking at The Wall Street Journal’s Future of Everything conference, Barra noted that U.S. automakers have faced an uneven playing field internationally due to tariffs and non-tariff trade barriers. She described tariffs as a tool the administration can use to create fairer conditions.
A federal appeals court recently decided to temporarily uphold President Trump’s 25% tariff on all imported automobiles and parts. In response, General Motors is taking steps to bolster its North American manufacturing efforts.
Barra mentioned that General Motors is pursuing increased resilience domestically and continues to build on this strategy. The company has announced an $888 million investment to develop a new V-8 engine at a New York plant, aiming to utilize existing capacity within the U.S. Despite this investment, the company anticipates a potential $5 billion impact from the tariffs in 2025.
Over the past five years, especially following the COVID-19 pandemic and a global semiconductor shortage, General Motors has relocated over 25% of its supply chain to the U.S. Currently, less than 3% of the automaker’s direct parts are sourced from China. Additionally, earlier this month, GM halted exports of certain vehicles to China.
As General Motors enhances its U.S. investment, Barra did not commit to specific pricing adjustments for consumers, noting that pricing is influenced by various factors and the competitive nature of the market. She emphasized that the company’s strong product lineup continues to drive consumer interest.
