GM Hit With $4,300 Tariff Shock per Vehicle—Profits Under Pressure

​General Motors just got slapped with a serious cost increase—and it’s coming straight out of Mexico and Canada.

According to UBS analysts, new tariffs imposed by the Trump administration will raise GM’s cost by $4,300 per vehicle for cars made in Mexico or Canada and sold in the U.S. For GM cars imported from Korea or China? The added cost jumps to a whopping $6,250 per vehicle.

UBS responded by downgrading GM’s stock from “buy” to “neutral” and slashing its price target to $51 from $64. The firm also lowered its Q1 earnings estimate to $2.79 per share, down from $2.89. Analysts say GM may now have to offset up to half the added cost through price hikes, which could dent demand in an already shaky market.

Shares of GM fell more than 4% on the news and are down 17.5% year-to-date, underperforming the broader S&P 500’s 9.7% drop.

While UBS expects no significant cost changes for GM’s U.S.-built vehicles, they believe the tariff shock could force GM to withdraw its full-year financial guidance, given the “ongoing macro and tariff-related uncertainty.”

​Bottom line: The Trump tariff wave is already hitting corporate bottom lines—and for GM, every car coming across a border just got a lot more expensive.