General Motors (GM) believes it can negotiate up to a 50% reduction on President Donald Trump’s recently-announced import tariffs, according to CNBC.
The U.S. President has ordered the 25% additional tariff on imports from Canada and Mexico in efforts to reportedly halt illegal immigration and drugs from entering the nation.
However, the Detroit automaker’s CEO is confident they can mitigate the add-on costs that could become levied on auto parts and vehicles being imported into the U.S.
GM CEO, Mary Barra, said during a Wolfe Research Investment conference:
“We are prepared…When we know exactly what’s going to happen and/or even have an indication of what’s going to happen, we know the steps we could take.”
Further information on a clear action plan is yet to be given. GM CFO Paul Jacobson hinted that measures may include the shifting of production or parts or vehicles.
The automaker has been operating in Canada for over 100 years and runs its Automotive Software Development Centre in Ontario.
GM also produced nearly 900,000 vehicles in Mexico in 2024, more than any other carmaker, and ships most of its Mexico-made vehicles to the U.S.
Ford CEO Jim Farley also spoke during the Wolfe conference separately from Barra, stating the tariffs will add “a lot of cost, and a lot of chaos” to the auto industry.
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