General Motors said Tuesday it expects to receive $500 million in tariff refunds from the federal government after the Supreme Court struck down some of President Trump’s tariffs.
The expected refund helped boost the automaker’s earnings in the first three months of the year. GM said it earned $2.6 billion in the quarter, a 6 percent decline from the same period a year earlier. Excluding interest, taxes and other items, the company’s profit increased by 22 percent.
In February, the Supreme Court ruled that Mr. Trump exceeded his authority when he imposed tariffs under the International Emergency Economic Powers Act of 1977, which gives the president certain powers in the event of a national emergency. This month, the administration set up a system through which businesses can apply for refunds.
GM’s expected refund helped mitigate the negative impact of lower vehicle sales and $1 billion in expenses related to GM’s decision to curtail production of electric vehicles.
GM CEO Mary T. Barra said the company’s “operating performance remained strong” thanks to strong sales of trucks and smaller SUVs and improvements in its China operations.
But it warned that the war in Iran is driving up costs and that recent war-related gas price increases could dampen sales of GM’s profitable pickup trucks. However, demand for these vehicles remains strong for now.
“The No. 1 thing we’re watching is what happens with the Iran conflict,” Ms. Barra said on a conference call with analysts and reporters. “But we believe it is prudent to wait and see how events unfold before making any changes” to GM’s earnings outlook.
The company is also affected by other tariffs — including those on imported steel, aluminum, automobiles and auto parts — that Mr. Trump imposed under Section 232 of the Trade Expansion Act of 1962. Those tariffs, which were not affected by the Supreme Court ruling, remain in place.
GM said it now expects to pay $2.5 billion to $3.5 billion in import duties in 2026, down from a previous range of $3 billion to $4 billion.
The company said its first-quarter revenue fell slightly to $43.6 billion. Global vehicle shipments fell 10 percent to 1.3 million cars and light trucks, partly due to a decline in sales of electric vehicles in the United States.
Demand for electric cars fell last fall after Congress and Mr. Trump ended tax breaks for buyers of electric vehicles. As a result, GM and other automakers are making fewer battery-powered cars.
GM is rebuilding a plant in Orion, Michigan to produce internal combustion vehicles instead of electric vehicles. The company took a $1 billion charge in the first quarter as a result of the change.
