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.

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

Analysts said GM may need to cut investment in future projects or find other ways to trim spending to offset the effect of tariffs.

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.

General Motors on Tuesday posted second-quarter results above analysts' estimates, but said it expects a bigger hit from tariffs in the second half of the year.

General Motors (GM) said Tuesday that President Trump’s tariffs cost the company $1.1 billion in the second quarter, contributing to an overall decline of 35 percent in profit. But the company

General Motors reported second-quarter earnings that beat Wall Street’s estimates, despite ongoing uncertainty from President Donald Trump's auto tariffs.