General Motors(NYSE:GM) reported quarterly financial results this week, beating Street estimates for earnings per share and missing revenue estimates.
Guidance from the company and comments on the conference call gave investors answers on just how much the company could get back from tariffs, thanks to the Supreme Court.
• General Motors stock is showing upward bias.
General Motors Tariff Refund Forecast
General Motors is one of many companies impacted by tariffs imposed by the U.S. government that were later deemed by the U.S. Supreme Court as illegally collected.
This week, General Motors updated its full-year EBITDA guidance from a prior range of $13 billion to $15 billion to a new range of $13.5 billion to $15.5 billion. The new guidance was shared during earnings and highlighted during the company’s conference call.
That $500 million difference is what the company expects to collect when asking for tariff refunds, according to the Associated Press.
The company also updated its tariff expenses range, now expecting 2026 costs of $2.5 billion to $3.5 billion, down from a prior range of $3 billion to $4 billion.
General Motors told the Associated Press that it has not received the refund yet, and this is the current estimate it expects to receive.
Trump To Remember Companies That Get Refunds
The Supreme Court ruled that the tariffs collected by President Donald Trump under the International Emergency Economic Powers Act were illegal.
While companies can now request refunds, they do so with the potential of upsetting the president.
A report from the New York Post said there was some hesitancy from General Motors to apply for the refund for that very reason.
During an interview with CNBC, Trump was asked about companies that may not request tariff refunds.
“I think it’s brilliant if they don’t do that, if they don’t do that, they got to know me very well. I’m very honored by what you just said,” Trump said. “If they don’t do that, I’ll remember them.”
Trump saying he will remember those who don’t apply for tariff refunds could be bad news for the companies that ask for money back, especially the publicly traded ones which speak openly about the item.
A source told the New York Post that General Motors may be low on the list of companies that Trump would be upset with for asking for tariff refunds, given its investments in U.S. manufacturing. GM has invested $5.5 billion over the past year for U.S. manufacturing improvements, according to the report.
Of course, companies that don’t request refunds could also be subject to shareholder lawsuits, which could put some companies in a no-win situation.
The New York Post said Amazon.com and Apple are among the companies that may not apply for tariff refunds, though they have not publicly announced this to be fact.