General Motors quarterly profit slumps 35%, but it sticks by full year outlook that was lowered in May

General Motors’ profit declined 35% in its second-quarter, including a $1.1 billion hit from tariffs, but the automaker easily topped expectations and stuck by its full-year financial outlook that it lowered in May .

GM CEO Mary Barra also said in a letter to shareholders on Tuesday that the automaker is attempting to “greatly reduce our tariff exposure,” citing $4 billion of new investment in its U.S. assembly plants.

"In addition to our strong underlying operating performance, we are positioning the business for a profitable, long-term future as we adapt to new trade and tax policies, and a rapidly evolving tech landscape," she said.

Barra said during GM's conference call that the automaker expects to build more than 2 million vehicles in the U.S. each year as it scales production.