>> Shares of General Motors down more than 7% Wednesday after a warning that President Trump's tariffs are cutting into profits. The nation's largest automaker lowering its earnings outlook for 2018, citing higher prices for steel and aluminum. Reuters' Nick Kerry is on the story.>> A large portion of it comes down to commodity costs and indirectly stemming from the steel and aluminium tariffs imposed by the Trump administration earlier this year.
GM doesn't buy much steel or aluminium from foreign producers, but US producers have used the tariffs as an opportunity to raise their own prices. So just along with everyone else who's importing their steel, GM has to pay more for US steel, and those costs are eating into profit margins.
>> And there's not much relief down the road. With the company saying it anticipates headwinds will continue through 2018. GM also cited currency devaluations in Brazil and Argentina as challenges. Another setback automakers are bracing for is Trump's threats to slap tariffs on all imported cars and car parts, a particular problem for the likes of GM.
>> There are also cars throughout their model lineup that are gonna have foreign parts to one degree or another, and that's the hidden part of the tariff cost that they're gonna be stuck dealing with, as will everyone else.>> The company's diminished outlook overshadowed an overall strong second quarter by GM.
In the US, the automaker said its pickup truck plans are running at more than 100% capacity, as they try to keep up with demand.