General Motors has reported a sharp drop in profits as it took a $1.1bn hit in Q2 due to the impact of trade tariffs. It said the net impact reflected ‘minimal mitigation offsets’. Net income was down by over a third on last year at $1.

General Motors has revealed that tariffs imposed by Donald Trump’s administration sliced an eye-watering $1.1 billion from its second-quarter profits, causing a 3% dip in its stock price. That throbbing hit knocked GM’s operating earnings down by nearly a third compared to the same time last year, the published numbers revealed.

General Motors’ Q2 profit fell 32% to $3bn due to a $1.1bn tariff hit from Trump’s trade policies, with the carmaker warning of deeper losses in the next quarter.

General Motors said tariffs slashed its second-quarter income by more than $1 billion, and other companies pointed to import duties to explain smaller profits.

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.

General Motors is the latest U.S. auto giant to say tariffs have taken a chunk from their earnings. The company beat earnings expectations on Tuesday, but reported a decline in second-quarter profits, including a $1.1 billion hit as a result of hefty import taxes.

General Motors is set to report its second-quarter earnings before the bell Tuesday. Wall Street analysts expect adjusted earnings per share of $2.44 and revenue of $46.4 billion. GM executives will host an earnings conference call at 8:30 a.m. ET.

The Trump administration’s tariffs are hitting companies that do business in the United States. But prices haven’t reflected them yet in many cases.

General Motors has delivered a warning to corporate America, publishing second-quarter earnings that included a shocking impact from auto-industry tariffs on its bottom line.