Tariffs on imported metals force General Motors to go slow on its profit projections.
The U.S. automaker has scaled back its forecast of this year’s earnings to about $6 a share, from a previous projection of $6.50.
The company's stellar earnings potential for 2018 (on the back of its solid equity earnings from its China business and record pretax profit from GM Financial) is apparently getting muted by U.S. tariffs slapped in June on steel and aluminum imports. The company faces $1 billion in raw material costs – almost twice its previous expectation. Volatility in the Argentine peso and Brazilian real pose additional headwinds to the firm’s business.