General Motors’ profit declined 35 percent in its second-quarter, but the automaker topped expectations and stuck by its full-year financial outlook that it lowered in May.

GM CEO Mary Barra also said in a letter to shareholders earlier this week that the automaker is attempting to “greatly reduce our tariff exposure,” citing $4 billion of new investment in its American assembly plants.

“In addition to our strong underlying operating performance, we are positioning the business for a profitable, long-term future as we adapt to new trade and tax policies, and a rapidly evolving tech landscape,” she said.

GM said that it’s making solid progress in mitigating at least 30 percent of the $4 billion to $5 billion gross tariff impact it anticipates for the year through manufacturing adjustments, targeted cost initiatives and with pricing.

There was a $1.1 billion net impact from tariffs in the second quarter and GM anticipates a higher net impact in the third quarter because of indirect costs related to tariffs.

For the three months ended June 30, GM earned $1.89 billion, or $1.91 per share. A year earlier the company earned $2.93 billion, or $2.55 per share.

Stripping out certain items, earnings were $2.53 per share. That handily beat the $2.34 per share analysts polled by FactSet were calling for.

Revenue declined to $47.12 billion from $47.97 billion, but still topped Wall Street’s estimate of $45.84 billion.

Electric-vehicle sales totaled 46,300 in the second quarter, up from 31,900 in the first quarter. Overall in the United States, EV sales growth has begun to slow. The $7,500 EV tax credit under the Inflation Reduction Act is set to expire in September for many models.

“Despite slower EV industry growth, we believe the long-term future is profitable electric-vehicle production, and this continues to be our north star,” she wrote. “As we adjust to changing demand, we will prioritize our customers, brands, and a flexible manufacturing footprint, and leverage our domestic battery investments and other profit-improvement plans.”

Wedbush analyst Dan Ives believes Barra is doing a good job dealing with the issues the auto industry is facing.

“While the tariff headlines continue to put further pressure on the bottom line for the foreseeable future, we believe Barra & Co. continues to impressively navigate the complex backdrop successfully while seeing continued high demand for its entire fleet of EVs and (internal combustion engine) vehicles,” he wrote in a client note.

GM maintained its full-year financial forecast. In May, General Motors lowered its profit expectations for the year as the carmaker braced for a potential impact from auto tariffs as high as $5 billion in 2025.

The Detroit automaker said at the time that it anticipated full-year adjusted earnings before interest and taxes in a range of $10 billion to $12.5 billion. The guidance includes a current tariff exposure of $4 billion to $5 billion. A month later, GM announced plans to invest $4 billion to shift some production from Mexico to U.S. manufacturing plants.