GM expects $500m tariff refund

General Motors said on April 28 it expects about $500 million in tariff refunds and raised its 2026 profit guidance. (gm.com) (cnbc.com) The Detroit automaker said first-quarter adjusted earnings before interest and taxes reached $4.3 billion, even after excluding the tariff adjustment. GM raised full-year adjusted earnings before interest and taxes guidance to $13.5 billion to $15.5 billion, up by $500 million. (gm.com) GM reported adjusted earnings per share of $3.70, ahead of the $2.62 expected by analysts tracked by LSEG, while revenue was $43.62 billion versus expectations of $43.68 billion, CNBC reported. GM shares closed Tuesday at $78.95, up 1.3%. (cnbc.com) The refund is tied to a February Supreme Court decision that ended and ordered refunds for certain tariffs collected under the International Emergency Economic Powers Act, the legal authority used for parts of President Donald Trump’s tariff program. GM said it has not received the cash yet but booked the benefit in the first quarter because it expects repayment. (cnbc.com 1) (cnbc.com 2) That accounting move gives investors a cleaner picture of how much of GM’s improved outlook came from operations and how much came from the court ruling. GM said its core business still showed momentum in North America, China and its international operations. (gm.com) Chief Executive Mary Barra said GM kept overall sales leadership in the United States and Canada, led the U.S. industry in full-size pickup sales with 42% of the market, and ranked second in electric vehicles. She also said China posted a sixth straight profitable quarter. (gm.com) Wall Street had largely expected tariff-related rebates for major manufacturers, but the exact amount for GM was not known before the earnings release. CNBC reported analysts were also weighing higher raw-material, freight and energy costs tied to the Iran war. (cnbc.com 1) (cnbc.com 2) GM started 2026 with adjusted earnings before interest and taxes guidance of $13 billion to $15 billion in January. Tuesday’s increase leaves the company’s formal outlook higher largely because of a court decision, not a new change in tariff policy from Washington. (cnbc.com) (gm.com) For GM, the immediate result is simple: a legal ruling on old tariffs turned into a $500 million earnings tailwind before the refund check arrived. (gm.com) (cnbc.com)