On February 19, General Motors CFO Paul Jacobson expressed at a Barclays conference that if U.S. tariffs were to become permanent, the company would need to consider relocating plants. However, he mentioned that no decisions had been made yet. GM, along with other automakers, is actively monitoring the effects of tariffs on vehicles and parts from Canada, Mexico, and other countries on their operations.
In preparation for potential tariffs, GM executives have been increasing their inventory movements across borders and exploring strategies to minimize cost impacts on the business. President Donald Trump has announced a 25% tariff on automobiles effective April, as well as a similar tariff on goods from Mexico and Canada, which was initially introduced and then delayed for a month.
Jacobson highlighted at the Barclays conference the complex considerations that would arise if tariffs became permanent: "If they become permanent, then there's a whole bunch of different things that you have to think about in terms of, where do you allocate plants, and do you move plants, etc." He emphasized the uncertainty surrounding these decisions in light of potential significant market impacts and the additional financial burden on the company.