General Motors (GM) has experienced a sharp drop in profits as it reported a $1.1 billion hit from tariffs imposed during the previous administration, resulting in a 35% decrease in quarterly earnings. Despite this setback, the company managed to exceed earnings estimates and reaffirmed its financial guidance for 2025. CEO Mary Barra emphasized ongoing efforts to mitigate the effects of tariffs as GM continues to thrive in the electric vehicle market, where sales have more than doubled. However, analysts warn of potential challenges ahead, with expectations of further tariff impacts in the second half of the year, leading to a decline in revenue and increased pressure on profit margins.