President Donald Trump’s 25% tariffs on imported vehicles and parts have sent shockwaves through the U.S. auto industry.

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

GM reports a second-quarter operating profit of $3 billion and earnings per share of $2.53 from sales of $47.1 billion.

General Motors and other U.S. companies give updates on how much President Trump’s tariffs are impacting them.

GM said earnings in the second quarter reflect a more than $1 billion hit from President Donald Trump's tariffs.

General Motors had a more than $1 billion chunk taken out of its profits due to tariff costs, the company reported on Tuesday. GM, as well as other automakers like Stellantis, have contributed to evidence indicating American companies and consumers—not exporters—are the ones paying for tariffs.

Toyota's stock surged 8% after the Trump administration's new tariff policy was announced, putting American automakers like Ford, GM, and Tesla at a disadvantage. This could backfire on the America First policy and investors should take note.

Automakers might increase prices moving forward, according to a report from the intelligence firm AlixPartners.