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

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

GM reports a second-quarter operating profit of $3 billion and earnings per share of $2.53 from sales of $47.1 billion.

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

The trade deal with Japan is also giving investors hope that there could be similar reductions on tariffs for vehicles imported from other countries—including trade agreements that would benefit U.S.

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.

General Motors (NYSE:GM) faces tariff pressures despite solid mitigation efforts, impacting profits and shares. Learn how trade risks shape GM's outlook.

At the president's behest, GM and other carmakers have not passed the costs of the tariffs along to the customer. But GM is especially vulnerable, since the American car company imports more than half of its inventory from overseas.