Trump faces a trillion-dollar tariff disappointment
In the early 20th century, before America introduced an income tax, tariffs paid many of the government's bills. President Donald Trump wants to revive that approach. He has repeatedly floated the idea of an ' External Revenue Service ', under which Uncle Sam would scrap income taxes and instead rely on levies at the border, with foreigners, at least in theory, funding the American government. 'It will be a BONANZA,' Mr Trump posted recently on his social-media site, claiming that tariffs could all but eliminate income taxes for people earning less than $200,000 a year.
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Auto Blog
37 minutes ago
- Auto Blog
Trump Tariffs to Add $1,760 to New Car Prices in 2025
Automakers Expected to Pass Tariff Costs to Consumers If you've been saving your pennies, hoping to scrimp together enough money to afford the new vehicle you've been wanting, you may need to dig deeper into the couch cushions. Its price is likely to go up by nearly $2,000 – and possibly a good bit more thanks to Pres. Donald Trump's new tariffs on imported autos and auto parts. All told, automakers will take a $30 billion hit this year due to the new trade sanctions and while manufacturers will swallow some of the tab, predicts a new study, they'll pass 80% of the cost onto consumers. Don't be surprised to see some products disappear from the market entirely, said suburban Detroit consultancy AlixPartners, especially some of the import models likely to be hit hardest by the new tariffs. Land Rover Defender 90 'A Big Wall of Cost' 'These tariffs bring a big wall of cost,' Mark Wakefield, the head of AlixPartners' auto practice said during an online briefing with reporters, with 'consumers taking the majority of the hit.' If there's any shred of a silver lining to the 2025 AlixPartners Global Automotive Outlook it's that we could see the White House continue to revise its tariffs on import autos and auto parts, even as it works up trade deals that. The consultancy anticipates this will eventually lower the sanctions from 25% to an average closer to 7.5%. Even Domestic Models Will be Impacted The White House has rolled out an assortment of new tariffs and has yet to fully lock down the rules, David Steinert, a partner in the AlixPartners auto practice, said during a follow-up interview with Autoblog. 'The tariffs have changed a lot over the last 60 days,' and will likely continue to be revised in the months ahead. As a result, it's difficult to come up with hard numbers – but the consultancy's 'best guess,' he added, is that the typical vehicle will cost at least $1,760 more than before the tariffs went into effect. And for foreign-made luxury models that could ran into the tens of thousands. Autoblog Newsletter Autoblog brings you car news; expert reviews and exciting pictures and video. Research and compare vehicles, too. Sign up or sign in with Google Facebook Microsoft Apple By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. 'Vehicles that are produced in the US today are the most advantaged,' Steinert said, 'but even domestically-sourced vehicles bring in lots of (foreign-made) parts' that are now subject to tariffs. And the duties will be especially high if those parts come in from China. Entry-Level Cars May Vanish as Costs Rise Automakers are expected to pass on about 80% of their tariff costs – though they won't do it uniformly, the AlixPartners study anticipates. 'Entry-level and mainstream cars will have less of a pass-through' than luxury and exotic models, explained Steinert. Automakers want to avoid driving budget buyers out of the new vehicle market. On the other hand, with 'higher-end brands, with customers who are less price-sensitive, more of the tariffs (will be) passed through.' In some cases, manufacturers may not find it worthwhile to absorb tariff costs. Nissan has already decided to dump the Versa, what is today the most affordable product line in the U.S., at the end of this year, according to Automotive News. Even some higher-end models could be dropped, said Steinert, if manufacturers find higher prices dry up sales. Luxury and Imported EVs Face Steepest Increases Battery-electric vehicles are seen as especially vulnerable, warned AlixPartners. A number of today's models, such as the Audi Q5 e-tron and Mercedes EQE sedan, are imported and face hefty tariffs. Even domestically assembled models, like the Tesla Model Y, typically rely on batteries either shipped in from China or built domestically using Chinese raw materials. Complicating matters: the federal budget bill backed by the Trump administration and now working its way through Congress. It is expected to eliminate federal tax credits of up to $7,500. And, said Wakefield, buyers are likely to 'follow their pocketbook' and stick to more affordable vehicles with internal combustion engines. In its 2023 Global Automotive Outlook, AlixPartners forecast EVs would account for 31% of the U.S. market. It now anticipates a figure closer to 17%. Source: Mercedes-Benz New Car Sales Likely to Decline Through 2027 Conventional wisdom suggests the new tariffs will result in declining new vehicle sales. The real question is how much of a slump might they trigger. Last month, Cox Automotive forecast demand could drop to as low as 15 million, about 1 million below the 2024 total. And the study warned that could dip into the low 14 million range in the event of a recession. For his part, AlixPartner's Wakefield is more upbeat. He thinks the U.S. market will decline by about 1 million – but over a three-year period – and then begin to bounce back. But there's a caveat. This would require the Trump administration to deliver on its promise to negotiate new trade agreements with key partners. So far, however, it's struggling to follow through, with only one big deal in place with the United Kingdom. About the Author Paul Eisenstein View Profile
Sky News
41 minutes ago
- Sky News
Israel 'will not stop' attacks until Iran's nuclear threat is 'dismantled', says Israel's UN ambassador
Israel's ambassador to the United Nations has vowed "we will not stop" attacks on Iran until the "nuclear threat is dismantled" and "its war machine is disarmed". The two countries traded angry accusations at the United Nations Security Council, as its secretary-general Antonio Guterres warned that expansion of the Israel-Iran conflict could "ignite a fire no one can control". Israel's UN ambassador Danny Danon vowed: "We will not stop. Not until Iran's nuclear threat is dismantled, not until its war machine is disarmed." 3:49 His Iranian counterpart Amir Saeid Iravani said Iran would continue to respond to Israeli airstrikes targeting nuclear sites that Israel sees as part of a weapons programme. Donald Trump is seeking advice about whether to support Israel's military involvement and is expected make a decision in the next two weeks. But he told reporters in New Jersey on Friday that his director of national intelligence (DNI), Tulsi Gabbard, was wrong in suggesting there is no evidence Iran is building a nuclear weapon. 0:27 Talks between Iranian and European ministers took place on Friday, but the US president was dismissive of the discussions. "Iran doesn't want to speak to Europe. They want to speak to us. Europe is not going to be able to help in this one". But he added that he might support a ceasefire between Iran and Israel "depending on the circumstances". Lammy on 'perilous moment' UK Foreign Secretary David Lammy warned "this is a perilous moment, and it is hugely important that we don't see regional escalation of this conflict", after he and his German, French and EU counterparts met Iran's foreign minister Abbas Araghchi in Geneva. He also referred to the role of the US in potential negotiations: "There is a... short window to find a diplomatic solution for the Iranians to... end their nuclear programme. "We're urging diplomacy. It's important they get back into serious talks with the United States." 1:04 Iran says attacks are 'grave war crimes' But the first face-to-face meeting between Western and Iranian officials since the start of the conflict, did not reveal any indication of an immediate breakthrough. Mr Araghchi described the talks as "a very serious but respectful discussion" but condemned what he called Israel's "atrocities", adding that "Iran will continue exercising its legitimate right of self-defence against the regime". "Iran is ready to consider diplomacy once again... once aggression is stopped and the aggressor is held accountable for the crimes committed. In this regard, I made it clear that Iran's defence capabilities are not negotiable," he added. Earlier, he called Israel's attacks on nuclear facilities "grave war crimes". On Friday, the Foreign Office announced that UK staff had also been evacuated from Iran, with the embassy continuing to operate remotely. Meanwhile, the UK government has announced it will use charter flights to evacuate Britons stranded in Israel once the country's airspace reopens. Iran wants 'endless negotiations' Jason Brodsky, policy director at the US-based pressure group United Against Nuclear Iran, told Sky News the talks in Geneva would not satisfy the US president. He said: "It seems that the maximum that the Islamic Republic is prepared to give still does not meet the minimum that President Trump is able to accept. "I think the Islamic Republic wants to lure the United States back into an endless negotiating process. They think they can dominate this process and manipulate President Trump. "President Trump has made it very clear that a deadline means a deadline. And he has red lines as well. And his red lines is zero enrichment in Iran." 4:53 Protests over Israeli strikes On Friday, thousands of people protested in Iran's capital Tehran after a week of Israeli strikes which have killed at least 657 people and wounded 2,037 others, according to the Washington-based group Human Rights Activists. Israel's military says 25 fighter jets carried out airstrikes on Friday morning targeting "missile storage and launch infrastructure components" in western Iran. In the Israeli city of Haifa, at least 19 people were wounded by an Iranian missile barrage. UN issues nuclear warning Addressing an emergency meeting of the UN Security Council, the head of the International Atomic Energy Agency (IAEA) warned against attacks on Iran's nuclear reactors. "A direct hit would result in a very high release of radioactivity," said Rafael Grossi, chief of the UN nuclear watchdog. Israel has not targeted Iran's nuclear reactors, instead focusing its strikes on the country's uranium enrichment sites. Iran has long insisted its nuclear programme is peaceful, although it enriches uranium up to 60%, well beyond the level required for an atomic power station and a step away from weapons-grade levels of 90%, according to the IAEA.
Reuters
an hour ago
- Reuters
Vance, in Los Angeles, says troops need to stay, blasts Newsom over immigration
LOS ANGELES, June 20 (Reuters) - Republican Vice President JD Vance on Friday met troops who have been deployed in Los Angeles to quell protests against immigration raids, as he accused Democratic state and city leaders of encouraging immigrants to cross the U.S. border illegally. Vance, who met some of the 700 U.S. Marines and 4,000 National Guard troops recently deployed to Los Angeles by President Donald Trump, also accused the Democratic leaders of failing to support local law enforcement. Trump deployed the California National Guard troops to Los Angeles earlier this month, against the wishes of Democratic Governor Gavin Newsom, to quell protests triggered by immigration raids on workplaces by Immigration and Customs Enforcement agents. A U.S. appeals court on Thursday let Trump retain control of California's National Guard. Trump's decision to send troops into Los Angeles prompted a national debate about the use of the military on U.S. soil and inflamed political tension in the country's second most-populous city. Vance said the court's decision made clear that Trump's troop deployment "was a completely legitimate and proper use of federal law enforcement." Vance gave no indication of when the Marines and National Guard would leave Los Angeles, and hinted that they might stay in the city for some time. "The soldiers and Marines are still very much a necessary part of what's going on here, because they're worried that it's going to flare back up," Vance said. He accused Newsom and Los Angeles Mayor Karen Bass of failing to crack down on people in the city illegally, and of failing to support local and state law enforcement. "They have treated Border Patrol and border enforcement as somehow an illegitimate force, instead of what they are, which is the American people's law enforcement trying to enforce the American people's laws," he said. Newsom is tipped to mount a presidential bid in 2028, and could conceivably face off against Vance. Diana Crofts-Pelayo, a spokesperson for Newsom, called Vance's claim "categorically false." "The Governor has consistently condemned violence and has made his stance clear," she said. She cited posts Newsom made on X, including one on June 9 when he said, "Foolish agitators who take advantage of Trump's chaos will be held accountable." Newsom has said Trump's deployment of troops exacerbated the protests, increased tensions and is unconstitutional.
