President Donald Trump’s 25% tariffs on imported vehicles and parts have sent shockwaves through the U.S. auto industry.

GM reports a second-quarter operating profit of $3 billion and earnings per share of $2.53 from sales of $47.1 billion.

The impacts will be felt more broadly in many industries, and the question is when the choice becomes to preserve profits by raising prices.

General Motors valuation remains attractive at 5.0X P/E forward earnings, with solid EV momentum and upside if tariffs ease. Learn more on GM stock here.

The trade deal with Japan is also giving investors hope that there could be similar reductions on tariffs for vehicles imported from other countries—including trade agreements that would benefit U.S.

Wall Street inched to another record following some mixed profit reports, as General Motors and other big U.S. companies gave updates on how much President Donald Trump’s tariffs are hurting or helping them.

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.

Automakers might increase prices moving forward, according to a report from the intelligence firm AlixPartners.