Quarterly Figures U.S. Companies Suffer From Customs Policy in the Country

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Tariffs are not good for business - as the balance sheet figures for General Motors and Harley-Davidson show. Profit prospects are plummeting. Mercedes-Benz reacts in its own way.

US President Donald Trump's tariff policy and the uncertainties in global trade are having an impact on the balance sheets of US companies. The US car manufacturer General Motors and the motorcycle manufacturer Harley-Davidson reported negative effects of the tariff policy, and even the burger chain McDonald's is feeling the effects of customer uncertainty in the current economic situation.

General Motors expects the US tariffs to cost billions of dollars and has significantly lowered its profit forecast. Even after the recently agreed relief for imported car parts, the tariffs are likely to cost the Group another four to five billion US dollars, wrote CEO Mary Barra in a letter to shareholders.

The GM boss cut the annual outlook for earnings before interest and taxes adjusted for special items to between 10 and 12.5 billion dollars, 8.83 billion to 11.06 billion euros. Previously, the Detroit-based car manufacturer had forecast an operating profit of up to 15.7 billion dollars.

Mercedes Invests in Production in the USA

Mercedes-Benz wants to build another model at its US plant in view of the US import tariffs. From 2027, a new vehicle in the mid-size segment tailored to US customers is to be produced in Tuscaloosa, Alabama, Mercedes announced on Thursday, May 1. According to the manufacturer, this is also intended to underline its commitment to the US market. This "core" segment, with models such as the E-Class and the GLC compact SUV, is the most important for Mercedes in terms of volume. Mercedes did not disclose which specific model is to be produced in Tuscaloosa.

Group CEO Ola Källenius had already held out the prospect of expanding in the USA when presenting the figures the day before. "It is a natural step to bring another model to Alabama," said Källenius according to the press release. "This is part of our strategy to deepen our commitment in the United States." Last year, around 260,000 cars rolled off the production line in Tuscaloosa. Mercedes sold a total of almost 325,000 cars in the important US market.

Harley-Davidson Fears EU tariffs

Harley-Davidson withdrew its financial outlook for the full year 2025 "due to the uncertain global tariff situation and macroeconomic conditions". This was issued on February 5 of this year. The results for the first quarter exceeded expectations in many areas, while retail sales in the USA were weaker than expected, the company announced in Milwaukee.

"We remain focused on navigating the difficult economic and tariff environment by diligently implementing our measures to increase cost productivity, reduce the supply chain, tightly control operating costs and reduce dealer inventories," emphasized Harley-Davidson CEO Jochen Zeitz. Harley-Davidson is one of the US companies that could be affected by possible EU counter tariffs.

McDonald's Senses Uncertainty Among Customers

Even at McDonald's, unsettled customers continue to cause problems due to the economic situation. On a comparable basis, revenue in the first quarter fell by one percent compared to the same period last year, as the US company announced in Chicago. Group CEO Chris Kempczinski spoke of the most difficult market conditions. Today's consumers are struggling with uncertainty.