“As mentioned earlier, we are making solid progress on our mitigation efforts and remain on track to offset at least 30% of this impact.”

In context

“ing assumption is unchanged at a year over year Turning to tariffs, the environment remains dynamic. The second quarter net impact of $1.1 billion was slightly lower than we had expected due to the timing of certain indirect tariff costs. As a result, we will likely see third quarter net tariff costs higher than in the second quarter. For the full year, while there have been some puts and takes since we gave our initial guidance, our gross tariff impact remains unchanged at $4 billion to $5 billion this year as we continue to produce and import vehicles from Canada, Mexico and Korea to avoid interruptions for our customers and dealers. Over time, we remain confident that our total tariff expense will come down as bilateral trade deals emerge and our sourcing and production adjustments are As mentioned earlier, we are making solid progress on our mitigation efforts and remain on track to offset at least 30% of this impact. With roughly one third coming from each of our key actions. Manufacturing adjustments, targeted cost initiatives, and consistent pricing. Next, I'd like to address the recent EV legislation signed by the administration. While we are still seeking further clarification on certain aspects, we anticipate these changes Our recent investments in U.S. Manufacturing give us the capabilities to flex produce an ICE and EV mix based on changing customer demand. We also anticipate that a more rational EV market along with the need to balance regulatory requirements against reduced EV incentives positions us well for sustained profitability in the years ahead. I want to be clear that our EV journey is about giving consumers choice. And over the last few years, a steady number of consumers are choosin”