GM Falls Victim to Trump’s Trade War as Metal Prices Sink Profit

Raw material costs expected to be $1 billion headwind in 2018
Burden is roughly double what the company expected earlier

General Motors Chief Financial Officer Chuck Stevens says the company wants free and balanced trade.Daybreak: Americas." (Source: Bloomberg)

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By David Welch

July 25, 2018 at 11:02 AM UTC

Updated on

July 25, 2018 at 3:12 PM UTC

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General Motors Co. has become the highest-profile American company to fall victim to Donald Trump’s trade wars by cutting its profit forecast for this year on surging prices for steel and aluminum.

Adjusted earnings will drop to about $6 a share, down from a previous projection for as much as $6.50 a share, the Detroit-based company said Wednesday. Raw material costs probably will be a $1 billion headwind -- roughly double GM’s previous expectation. The carmaker’s shares are on course for their steepest one-day plunge in more than seven years.