GM’s stock dropped more than 7% after carmaker reported$1.1 billion in tariff costs in the second quarter, despite mitigation efforts.

General Motors ( No. 18 on the Fortune 500) reported its Q2 earnings results on Tuesday. The company’s net income fell 35% from the same period last year, as higher costs and uncertainty surrounding the Trump administration’s automotive tariffs resulted in a $1.1 billion hit to its bottom line.

For the fiscal year, as GM ( NYSE: GM) continues to deploy mitigation efforts to offset the impact of import tariffs, net income is expected to be within a range of $7.7B to $9.5B, or $8.25 to $10 per share versus $9.25 per share estimates. Adjusted EBIT is targeted for $10B to $12.5B versus estimates of $11.25B.