General Motors said tariffs slashed its second-quarter income by more than $1 billion, and other companies pointed to import duties to explain smaller profits.

The Detroit Three automakers express concerns over a trade deal lowering tariffs on Japanese auto imports while maintaining higher tariffs on Canadian and Mexican imports. Trump's proposed tariff increases further strain the U.

General Motors is the latest U.S. auto giant to say tariffs have taken a chunk from their earnings. The company beat earnings expectations on Tuesday, but reported a decline in second-quarter profits, including a $1.1 billion hit as a result of hefty import taxes.

“A world with tariffs is unacceptable for us,” Beato said. “A world with tariffs puts our plant in a vulnerable position, even more so than it is now, and not only for our plant, but all of southern Ontario and the whole auto industry.”

The American Automotive Policy Council, representing General Motors, Ford, and Stellantis, expressed concerns over a new trade deal potentially lowering tariffs on Japanese auto imports to 15%, while maintaining 25% for Canada and Mexico.

General Motors was the second auto company this week, after Stellantis, to show the toll that President Trump’s trade policies are taking on the industry.