General Motors is on the brink of a financial crisis as President Trump’s shocking 25% tariffs on vehicle imports from Mexico and Canada threaten to unravel its $279.8 billion empire. With nearly half of GM’s production based outside U.S. borders, the automaker faces a dire choice: bring manufacturing home or plunge into a financial abyss. The new tariffs, which analysts predict could inflate vehicle prices by up to $8,000, have already sent GM’s stock plummeting 7% in a single day.

As executives scramble to respond, CEO Mary Barra is implementing immediate strategies to mitigate damage, including ramping up U.S. production at the Fort Wayne facility and renegotiating logistics contracts. However, these short-term fixes may not be enough to counteract the long-term challenges posed by the tariffs. GM’s complex supply chain, which often sees components cross the border multiple times, adds layers of cost and delay that threaten its competitiveness.

In a bold move, GM has committed $59 billion to reshoring production and upgrading its facilities for electric vehicles (EVs). But the clock is ticking, and the transition won’t be quick or easy. With rivals like Ford, which maintains a stronger domestic manufacturing base, poised to capitalize on GM’s struggles, the stakes have never been higher.

As the U.S. auto industry grapples with this unprecedented upheaval, the outcome remains uncertain. Can GM pivot quickly enough to salvage its operations, or will it succumb to the pressures of a rapidly changing market? The answer could redefine the future of American manufacturing. Time is running out, and the automotive world is watching.