General Motors Announces $4B Domestic Production Push Amid Tariff Pressures

General Motors is allocating $4 billion to expand U.S. manufacturing capacity across three states, signaling a strategic pivot toward domestic production. The MOVE comes as automakers grapple with the financial impact of Trump-era tariffs—including 25% levies on imported vehicles and 50% duties on steel and aluminum.

CEO Mary Barra had previously flagged tariff-related headwinds of $4B-$5B for 2025. Last year''s production figures reveal GM''s reliance on foreign factories: nearly 1 million vehicles imported from Mexico and Canada, supplemented by 415,000 units from South Korea and 47,000 Chinese-built Buicks.

The investment targets facilities in Michigan, Kansas, and Tennessee, with dual focus on combustion-engine and electric vehicle lines. This recalibration underscores how protectionist policies are reshaping automotive supply chains, compelling manufacturers to weigh geopolitical risks against cost efficiencies.