The tariff on imported Japanese cars has been cut to 15%, down from 25%, in a deal announced by President Donald Trump.

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.

Toyota's stock surged 8% after the Trump administration's new tariff policy was announced, putting American automakers like Ford, GM, and Tesla at a disadvantage. This could backfire on the America First policy and investors should take note.

There is a growing level of economic uncertainty surrounding the North American Auto Industry, especially the Big Three.

General Motors' second-quarter earnings took a $1.1 billion hit from tariffs, but the automaker still beat analyst expectations for the period, supported by strong sales of its core gasoline trucks and SUVs.

Automaker General Motors posted a 12% sales gain through the first half of year while working to mitigate the effects of President Donald Trump's tariffs.

The American automaker reported that tariffs cost them $1.1 billion and reduced the company's profit margin from 9% to 6.1%.