1 Way Tariffs Could Cripple GM for Investors

Group 1: Tariff Impact on General Motors - President Trump's announcement of a pause on reciprocal tariffs for 90 days does not include the automotive sector, which will still face a 25% duty on vehicle imports [1][5] - General Motors is expected to face an additional 25% tariff on automotive parts, which could significantly impact its financial strategies, particularly share buybacks [2][5] - GM's reliance on imports is substantial, with an estimated $56 billion in vehicle imports from Mexico and Canada, leading to a potential tariff exposure of approximately$14 billion [7][8] Group 2: Share Buybacks and Financial Strategies - General Motors has committed to $16 billion in share buybacks from 2023 to 2025, which has positively influenced its stock price [3] - Recently, GM announced a 25$6 billion share repurchase authorization, alongside an accelerated share repurchase program for $2 billion [4] - The looming tariffs may force GM to reconsider its share buyback strategy, potentially pausing these activities to conserve cash [9][10]