General Motors reported an improved financial outlook on Tuesday, attributing a portion of its recent success to strategic adjustments aligned with regulatory and trade policy changes enacted during the Trump administration. Despite headwinds including high gasoline prices and a decline in overall vehicle sales, the Detroit-based automaker raised its full-year profit forecast and recorded higher revenue in the second quarter.

CEO Mary Barra highlighted GM’s decision to scale back earlier ambitious electric vehicle (EV) rollout plans, instead focusing on expanding production of traditional, profitable pickup trucks and SUVs. Regulatory rollbacks under the Trump administration, which eased emissions standards and reduced pressure on automakers to shift rapidly to EVs, played a key role in the company’s revised strategy.

While some Trump-era policies, such as tariffs on imported vehicles and parts, initially raised concerns for GM, the company has fared better than many competitors amid the changing trade landscape. Barra noted that GM has remained resilient, emphasizing consistent performance despite market uncertainties. Since the former president returned to office, GM’s shares have increased more than 50%, reflecting investor confidence in the company’s ability to navigate deregulation and trade challenges.

Barra, who had faced public criticism from Trump during his first term over workforce reductions and states’ rights to set stricter vehicle emissions standards, has adopted a more cooperative stance in the current administration. She praised tariffs last year as a means to protect domestic manufacturing and has delayed phasing out gas-powered vehicles in favor of EVs, pointing to weaker consumer demand and regulatory easing as motivating factors.

In addition to automotive production, GM is increasingly involved in the defense sector, aligning with Trump’s push to boost U.S. weapons manufacturing. The company is collaborating with Lockheed Martin and is a leading contender to develop a next-generation infantry squad vehicle to replace the Army’s Humvee. GM’s defense division expects to generate approximately $700 million in revenue this year, with double-digit profit margins, contributing to a growing segment of the company’s business.

Despite selling 4% fewer vehicles compared to the previous year in the second quarter, GM’s revenue rose 2%, bolstered by strong sales of larger trucks and SUVs. The automaker also reported earnings per share that exceeded Wall Street expectations and raised its full-year earnings before interest and taxes (EBIT) forecast to between $14 billion and $16 billion, up from an earlier estimate of $13.5 billion to $15.5 billion. Barra expressed optimism that this upward trend will continue into 2027.

Industry analysts acknowledge that GM’s results reflect a complex interplay of policies. While tariffs have created additional costs, the company has benefited overall from deregulation and a strategic recalibration. GM’s rivals have experienced mixed outcomes; Toyota is reportedly facing losses in North America linked to tariffs, and Ford has encountered significant challenges adapting to the modified EV investment timeline.

GM’s increased federal lobbying expenditures this year, the highest among U.S. companies, underscore its commitment to influencing policy amidst an evolving automotive landscape shaped by regulatory and geopolitical shifts.