GM and Ford aren’t staying quiet on tariff impacts anymore

General Motors is revving up to meet its incoming tariff-related challenges, by putting contingency plans in place in the event President Trump decides to move ahead with the measures on March 1.

The details: The plans seek to mitigate the impact of the levies set to be imposed on Mexico and Canada for vehicles and auto parts imported to the U.S.

• GM believes it can offset 30% to 50% of the added costs from potential tariffs in the short term without requiring additional capital investment, according to CEO Mary Barra.

• GM is also prepared to change production or parts or vehicles as needed to offset the impact of the levies on its operations.

Barra discussed the company’s plans at a recent Wolfe Research investment conference. Barra was joined by GM CFO Paul Jacobson at the event, which marked the first time the automaker provided details on how it plans to cope with the levies.   

Digging deeper: GM isn’t the only Detroit automaker now weighing in more heavily on the tariffs. Ford CEO Jim Farley—who was also on hand for the Wolfe Research investment conference—shared his thoughts on the looming threat of the levies as the March 1 deadline for Trump’s 30-day pause on the measures draws closer.

• Farley described the threat of the 25% tariffs on steel and aluminum as “chaos.”

• The CEO said that while Trump claims he wants to make the U.S. auto industry stronger, the levies do the opposite by increasing costs.    

• Farley also talked about how the 25% tariffs could benefit Toyota and Hyundai in the U.S. market, given the little—if any duties—they are required to pay.   

Why it matters: Even with contingency plans in place, GM and Ford are playing defense in an unpredictable policy environment. While both automakers are focused on limiting short-term damage, the real challenge is adapting to a future where trade policy remains a moving target.

Bottom line: Tariffs may come and go—but the constant uncertainty is forcing companies to bake geopolitical risk into their long-term strategies. That means automakers aren’t just making production shifts for this tariff cycle—they’re probably reassessing how much exposure they want to global supply chains at all.

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