GM Raises Earnings Outlook on $500M Tariff Refund

General Motors (GM) has raised its 2026 earnings outlook after expecting a $500 million refund from tariffs struck down by the U.S. Supreme Court, according to multiple reports. The Detroit automaker reported strong first-quarter results and adjusted its financial guidance accordingly.

The refund stems from the Supreme Court's decision in February that deemed certain Trump-era tariffs illegal under the International Emergency Economic Powers Act (IEEPA). GM has not yet received the refund but expects it to significantly impact its 2026 earnings. The company now anticipates earning between $13.5 billion and $15.5 billion before interest and taxes, up from previous forecasts of $13 billion-$15 billion.

In the first quarter of 2026, GM reported earnings of $4.25 billion, a 21.9% increase compared to the same period last year. The company's revenue was in line with Wall Street expectations but down about 1% from a year earlier. Despite this, GM's CEO Mary Barra expressed confidence in the company's performance and long-term goals.

GM also announced that it expects to pay between $2.5 billion and $3.5 billion in tariff costs for 2026, down from an original estimate of $3 billion-$4 billion. The company is among many seeking refunds for IEEPA tariffs they have already paid, with the Customs and Border Protection (CBP) agency launching an online system for claims.