Is Corporate America on the Brink? GM Hits Pause, UPS Slashes 20,000 Jobs Amid Trade Turmoil

President Trump's broadside new tariffs are creating a whirlwind of turbulence in Corporate America, with two titans-General Motors and UPS-making breathtaking moves as economic uncertainty continues to build.

 

General Motors shocked investors by withdrawing its 2025 financial guidance and delaying its planned analyst call until Thursday. The automaker blamed the unpredictable effect of Trump's 25% tariffs on imported auto parts and vehicles, which analysts put at a cost of $108 billion for U.S. automakers this year. GM management cautioned investors against counting on past advice, highlighting that future tariff repercussions might be "substantial." Even as revenue rose 2.3% to $44 billion in Q1, GM's net income fell 6.6% as shoppers scrambled to purchase ahead of expected price increases. The automaker also suspended its share buyback program temporarily, waiting for trade policy clarity.

 

Simultaneously, UPS said it will reduce 20,000 positions in 2025, focusing on operational jobs as shipping volumes dive. This comes on top of the 12,000 cuts last year and as Trump's tariffs pinch small and medium-sized firms that cannot afford to absorb ballooning import prices. UPS CEO Carol Tomé said the global trade environment is the most dislocating in a generation, with the firm not being able to offer outlook for next year.

 

These actions highlight the broad corporate disarray caused by unpredictable trade policies, as scores of big companies withdraw projections and rush to adjust.

 

Sources: Reuters, The New York Times, ThePrint