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.

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.

Despite the setback, GM’s leadership remains optimistic, forecasting continued growth, particularly in the electric vehicle segment. CEO Mary Barra and CFO Paul Jacobson acknowledged that the tariffs had a significant impact on profitability,

General Motors' second-quarter earnings took a $1.1 billion hit from tariffs, but the automaker still beat analyst expectations for the period, supported by strong sales of its core gasoline trucks and SUVs.

The president's trade policies are wreaking havoc on the American auto industry. Another automaker, Stellantis, also reported losses this week.