Automaker General Motors posted a 12% sales gain through the first half of year while working to mitigate the effects of President Donald Trump's tariffs.

General Motors' latest earnings report showed that President Trump's new tariffs on imported cars may have impacted the company's profits. Laila Maidan, a reporter for MarketWatch, joins with more details.

GM second quarter 2025 earnings are headlined by $1.9 billion in net income (profit) on $47 billion in revenue. See complete General Motors Q2 2025 earnings.

GM CEO Mary Barra hasn’t ruled out raising car prices, however, and has said the company will stay competitive.

GM reported a $1.1 billion hit from President Trump’s tariffs this quarter. CEO Mary Barra says automation focus is on factory efficiency, not AI cars. Piper Sandler said GM needs strategic changes to compete in the AI era.

The president's trade policies are wreaking havoc on the American auto industry. Another automaker, Stellantis, also reported losses this week.

General Motors' second-quarter earnings took a $1.1-billion hit from tariffs, but the automaker still beat analyst expectations for the period on Tuesday, supported by strong sales of its core gasoline trucks and SUVs.

Expenses related to its 6.2-liter V-8 and higher claims due to software issues from EVs that launched over the past few years increased by $300M.

The impacts will be felt more broadly in many industries, and the question is when the choice becomes to preserve profits by raising prices.