General Motors on Tuesday said it anticipated a $500 million tariff refund from the Trump administration after the Supreme Court struck down President Donald Trump’s sweeping levies, boosting the legacy automaker’s earnings projections, though it’s unlikely consumers will receive any benefits from the large-scale rebates.
The Trump administration opened requests for tariff refunds earlier this month after the Supreme Court struck down Trump’s levies.
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GM disclosed its $500 million estimate while reporting first-quarter earnings on Tuesday, and the automaker said the rebate would raise its full-year earnings guidance to between $13.5 billion and $15.5 billion, or $11.50 to $13.50 per share.
The automaker reported quarterly revenue of $43.6 billion and $3.70 earnings per share, surpassing consensus analyst expectations of $43.5 billion and $2.60, according to FactSet.
In a letter to shareholders, CEO Mary Barra said the company was “clearly operating in a very dynamic environment,” but said GM saw solid growth and a strong balance sheet “to achieve [its] long-term goals.”
Shares of GM fell slightly (0.06%) as of Tuesday afternoon, paring back further losses earlier in the day.
Some 300,000 U.S. importers will receive $166 billion in refunds from the Trump administration, and that amount will be paid back with interest, Customs and Border Protection disclosed in a court filing. The amount each company receives will vary, but billion-dollar rebates are expected for Walmart ($10.2 billion), Target ($2.2 billion), Nike ($1 billion), while other retailers will likely receive less, like Gap ($400 million), Kohl’s ($550 million) and Home Depot ($540 million), Citi analysts wrote earlier this month.
Americans likely won’t see lower costs as a result of the refunds. UBS chief economist Paul Donovan wrote the rebates would only benefit U.S. importers and it “seems unlikely anyone will rush to lower prices to their consumers. Goldman Sachs analysts said in February that consumer prices would likely not decline anytime soon because of the rebates, adding that Trump’s tariffs will likely raise prices by another 0.1% in 2026 after adding 0.7% to inflation over the last 10 months. Some legal analysts have criticized the refund process, as only a few businesses, including FedEx and Costco, have said they would share the proceeds, arguing many firms would benefit from the refunds despite asking consumers to pay higher prices brought on by the tariffs.
Trump’s sweeping tariffs on U.S. trade partners were struck down as unlawful by the Supreme Court in February, allowing companies to seek refunds for the levies they paid. The court’s ruling did not address how refunds would be issued, however, as the Trump administration fought to delay the refund process. The Court of International Trade ruled in March that the Trump administration had to begin canceling and refunding tariffs, and customs officials launched the platform for companies to file claims last week. That same day, Trump said he would fondly “remember” the companies that did not ask for a refund, adding it was “brilliant” that some of the world’s largest companies, including Apple and Amazon, had not requested to be repaid.
ForbesTariff Refunds Start Today—But Average Consumers Won’t BenefitForbesTrump Says He’ll ‘Remember’ Companies That Don’t Apply For Tariff RefundsBy Mary Whitfill Roeloffs
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