GM CEO Barra joins Ford in backing controversial White House policy

The U.S. tariffs on imported automotives and automotive parts have cost GM immensely this year.

Tariff payments shaved $2.8 billion off General Motors second-quarter adjusted automotive free cash flow, causing a $2.5 billion year-over-year decrease. 

General Motors Q3 facts at a glance:

• U.S. market share: 17%
• Electric vehicles sold: 67,000
• EV market share: 16.5%
• Dealer inventory: Down 16% year over year
• EV inventory: Down 30% since June
  Source: General Motors

In the third quarter, which concluded in October, GM reported a $1.1 billion tariff impact on its adjusted EBIT, resulting in a $700 million year-over-year decline overall.

Without tariffs, GM would have reported EBIT-adjusted margins of 9%; however, with tariffs, the company reported margins of 6.2%.

Despite these tariff overhangs, GM CEO Mary Barra has praised the import duties. This week at the New York Times DealBook conference, she continued her support.

GM CEO Mary Barra praises President Trump's auto tariffs

Tariffs impact GM more than other U.S. auto companies because GM imports more than the others do.

Nearly half of the vehicles GM sold in the U.S. in 2024 were imported, CNBC reported. GM sold 1.23 million imported vehicles in the U.S. in 2024.

Related: General Motors makes a harsh decision as EVs falter

GM imported more vehicles than Toyota. Meanwhile, Stellantis sold 564,600 imported vehicles and Ford sold only 419,000.

Despite this discrepancy, GM is a fan of the tariffs.

"There was not a level playing field. I think there has been a lot done with tariffs to have a more level playing field. For years we faced either tariffs, or non-tariffs trade barriers," Barra said.

GM was paying a 25% to 50% export fee to get its vehicles to China, while China paid just 2% tariffs, according to Barra. For Europe, GM paid 10% compared to the tariffs of 2% to 2.5% paid by European car companies here.

"I think getting to a more level playing field is definitely better for all of the American OEMs as we move forward," Barra said.

GM CEO Mary Barra has praised tariffs before

This isn't the first time Barra has praised the president's tariffs.

Barra defended them last week during an interview earlier this year, pointing to the disadvantages U.S. automakers face overseas. 

“For decades now, it has not been a level playing field for us automakers globally, with either tariffs or non-tariff trade barriers. So I think tariffs is one tool that the administration can use to level the playing field,” Barra told the Wall Street Journal.

Barra went on to say that her relationship with President Trump has improved since his first term, saying, “There was actually some things where General Motors could have handled some situations better."

During his first term, the president and GM clashed over numerous issues, including plant closures and moving jobs overseas. However, GM is one of the federal government’s biggest partners, with hundreds of millions of dollars in contracts to supply the executive branch and military with vehicles. 

GM has a large manufacturing footprint outside of the U.S.

GM imports more vehicles into the U.S. annually than Japanese automaker Toyota. About half of the vehicles it sells in the U.S. come mainly from Korea, Canada, and Mexico.

According to researcher GlobalData, GM sold 1.23 million imported vehicles in the U.S. in 2024. Meanwhile, Stellantis sold 564,600 imported vehicles, and Ford sold only 419,000 imported cars.

Related: Ford, General Motors get disturbing news on car sales

Earlier this year, GM stated that it expected between $4 billion and $5 billion in tariff charges in 2025, approximately $2 billion of which is attributed to Korea.

While the company announced a $4 billion investment in U.S. manufacturing that will add up to 300,000 units of annual capacity for high-margin light-duty pickups, full-size SUVs, and crossovers, it also has no plans to shrink its Korean operations.

“We’ve had the operation in Korea for a very, very long time. It’s a very efficient operation that we’re very proud of," Barra said during the company's second-quarter earnings call.

GM imports entry-level Chevy and Buick sedans from Korea that retail for under $30,000. 

“The vehicles that we produce there, they’re in high demand….So I think we’re in the right place where we are right now," Barra said.

Related: Analyst picks a winner in the EV race between Ford and GM