President Donald Trump’s 25% tariffs on imported vehicles and parts have sent shockwaves through the U.S. auto industry.

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.

Automakers might increase prices moving forward, according to a report from the intelligence firm AlixPartners.

The impacts will be felt more broadly in many industries, and the question is when the choice becomes to preserve profits by raising prices.

General Motors and other U.S. companies give updates on how much President Trump’s tariffs are impacting them.

Tariffs took a bite out of GM’s second-quarter earnings, but the automaker is executing a plan that includes building more internal combustion engine vehicles in the U.S. while continuing to improve its electric models, using plants with the flexibility to build both to get through this transitionary period.

Toyota's stock surged 8% after the Trump administration's new tariff policy was announced, putting American automakers like Ford, GM, and Tesla at a disadvantage. This could backfire on the America First policy and investors should take note.

GM said earnings in the second quarter reflect a more than $1 billion hit from President Donald Trump's tariffs.