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Who’s paying for Donald Trump’s tariffs? So far, it appears to be American businesses and consumers. General Motors was the latest US company to disclose how the levies are raising costs, with the automaker saying Tuesday that the duties dented profits by more than $1 billion as it chose to absorb the blow. That helps explain why car prices didn’t rise in last week’s inflation data, while robust price increases for other commonly imported goods like toys and appliances showed those tariff expenses are indeed being passed on to consumers.
GM said it suffered a $1.1 billion profit hit from Trump’s trade war and revealed no plan for a near-term fix to return to pre-tariff profit levels. The automaker said it earned $2.53 per share on an adjusted basis, above the Bloomberg consensus forecast of $2.33 but short of the $3.06 it made a year ago.
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