General Motors expects to receive around $500m in tariff refunds related to now-defunct Trump administration levies, according to executives on the company’s first-quarter earnings call.
Chief financial officer Paul Jacobson said GM plans to record the refund as a receivable, although the timing of payment remains uncertain. The company has not yet changed its free cash flow guidance as a result.
Despite the expected refund, GM still expects a significant tariff impact in 2026. Jacobson estimated total duty costs at between $2.5bn and $3.5bn.
The company remains exposed to Section 232 duties on steel and aluminum imports, which account for most of the projected impact. In the first quarter alone, GM incurred a $200m tariff bill, even including the assumed refund.
To mitigate the burden, GM has used aluminum hedging and staggered steel supply agreements. Its steel contracts are spread across spot-rate deals and longer-term agreements of one and two years.
The automaker has also used production shifts to the US, manufacturing adjustments, targeted cost initiatives, and pricing discipline to manage tariff exposure.
Jacobson said GM expects self-help measures from 2025 to continue into 2026 and is pursuing additional opportunities to offset costs.
