General Motors anticipates a smaller impact from tariffs and is boosting its full-year adjusted earnings forecast as its third-quarter performance topped Wall Street’s expectations.

The automaker reduced its expectations for the full-year gross impact from tariffs to a range of $3.5 billion to $4.5 billion. Its previous guidance was $4 billion to $5 billion. GM anticipates its tariff mitigation actions will offset about 35 percent of the impact due to a lower tariff base.

President Donald Trump last week gave domestic automakers additional relief from tariffs on auto parts, extending what was supposed to have been a short-term rebate until 2030. It’s part of a proclamation Trump signed that also made official a 25 percent import tax on medium and heavy-duty trucks, starting Nov. 1.

The action reflected the administration’s efforts to use tariffs to promote American manufacturing while also trying to shield the auto sector from the higher costs that Trump’s import taxes have created for parts and raw materials.

“The MSRP offset program will help make U.S.-produced vehicles more competitive over the next five years, and GM is very well positioned as we invest to increase our already significant domestic sourcing and manufacturing footprint,” GM CEO Mary Barra said in a letter to shareholders.

GM previously announced $4 billion in capital investments to onshore production at plants in Tennessee, Kansas and Michigan over the next two years. Barra said that once those investments are in place, the company plans to make more than 2 million vehicles per year in the United States.

The automaker also is investing nearly $1 billion to build a new generation of advanced, fuel-efficient V8 engines in New York.

For the three months ended Sept. 30, GM earned $1.33 billion, or $1.35 per share. A year earlier, the automaker earned $3.06 billion, or $2.68 per share.

Earnings, adjusted for one-time gains and costs, were $2.80 per share. That beat the $2.28 per share that analysts surveyed by Zacks Investment Research were calling for.

Revenue totaled $48.59 billion, topping Wall Street’s estimate of $44.27 billion.

GM now foresees full-year adjusted earnings between $9.75 and $10.50 per share. Its prior outlook was for $8.25 to $10 per share. Analysts polled by FactSet predict full-year earnings of $9.46 per share.

Barra also said GM is reassessing its electric-vehicle capacity and manufacturing footprint.

The announcement comes a week after GM said it would record a negative impact of $1.6 billion in the third quarter after tax incentives for EVs were slashed by the United States and rules governing emissions are relaxed.