Trump's Tariff For The Loss Of Dozens Of Trillions Of Motorcycles, Electric Car Sales Are Increasingly Crazy

Cadillac Escalade IQ 2026. (Photo. Cadillac)

JAKARTA President Trump's trade war policy continues to shake up American companies, and General Motors (GM) is one of the hardest hit. The automotive giant recorded significant losses of US$1.1 billion (equivalent to Rp17.9 trillion) in the second quarter due to tariffs.

A report from Carscoops, July 23, predicts this tariff load could swell to 4-5 billion US dollars throughout the year, potentially forcing GM to increase the price of its products in the market. However, amid this onslaught, GM still shows its rot. GM does lose due to tariffs, but this is only a small part of their operations. Overall, they still generate large revenues of 47.1 billion US dollars (income before interest and taxes) from vehicle sales in the second quarter, signaling a tough financial performance.

In North America, GM earned a net revenue of US$39.5 billion, supported by record-breaking crossover sales and very high truck demand. Inventory at US dealers also shrank, indicating strong sales.

EV Sales Soar Drastically

Even more surprising, GM's electric vehicle sales jumped dramatically ahead of the abolition of electric vehicle subsidies on August 1. EV sales in the second quarter skyrocketed 111 percent compared to last year, leading GM to control 16 percent of the US EV market.

Chevrolet stole the show as the second best-selling EV brand with a sales increase of 146 percent, mainly thanks to the affordable EV Equinox, which is now America's third best-selling electric vehicle this year. Not to forget, Cadillac holds the title of best-selling electric luxury brand and the fifth-largest EV brand in the US, both in the luxury and general segments.

In a letter to shareholders, GM CEO Mary Barra acknowledged the slowdown in EV growth, but remained optimistic.

We believe the future is a profitable electric vehicle. This is our compass. We will adapt to market dynamics, prioritize customers, strengthen brands, and maximize manufacturing flexibility and investment in domestic batteries," he stressed.

Barra also alluded to GM's agile strategy of continuing to encourage electrification while maintaining an internal combustion engine (ICE) vehicle, which turns out to have a longer "age" than expected. This move ensures GM remains relevant in the market that continues to change, balancing consumer innovations and demand cleverly.