Latest news with #US-Mexico-Canada
Los Angeles Times
11 hours ago
- Automotive
- Los Angeles Times
Auto tariffs seen hiking car prices by nearly $2,000 per vehicle
Car buyers will bear the brunt of the $30 billion cost of President Donald Trump's tariffs, driving up already high US auto prices by almost $2,000 per vehicle, according to consultant AlixPartners. The firm expects auto companies to pass along 80% of the cost of Trump's tariffs — which it calculates as $1,760 more per car. AlixPartners, as part of its annual global automotive outlook, also cautioned that the administration's anti-electric vehicle policies risk relegating American automakers to bit players in the global EV market. 'These tariffs bring a big wall of cost,' Mark Wakefield, global auto market lead for AlixPartners, told reporters in an online briefing. We see 'consumers taking the majority of the hit.' General Motors Co. and Ford Motor Co. have already said they expect a $5 billion and $2.5 billion tariff impact this year, respectively, though they say they will find offsets in part through price adjustments. Those higher prices will result in about 1 million fewer vehicles sold in the US over the next three years, Wakefield said. But the consultant expects US auto sales to reach 17 million in 2030, 1 million more than last year, as the impact of tariffs abates. AlixPartners' predicted sales hit is more muted than some other projections because the firm sees tariff rates falling as the US negotiates trade deals with other countries. It forecasts the 25% auto tariff will ultimately fall to 7.5% on assembled autos, 5% on parts and even lower on cars and parts that are compliant with the US-Mexico-Canada trade agreement. 'This tariff wall is not likely to last forever,' Wakefield said. What's likely to have a longer-lasting impact is the Trump administration's move to reduce and eliminate incentives to spur the sale of electric vehicles, such as the $7,500 consumer tax credit for purchasing a battery powered model, he said. That will steer car buyers away from EVs as they 'follow their pocketbook' and buy traditional gasoline-fueled vehicles, Wakefield said. AlixPartners slashed its forecast for EV sales in the US by nearly half. It now sees battery electric vehicles making up just 17% of US auto sales in 2030, down from a previous prediction that EVs would make up 31% of sales by then. Traditional internal combustion engine vehicles will account for half of US sales in 2030, up from AlixPartners' previous prediction that they would only make up about one-third of sales. The consultant sees traditional hybrids accounting for 27% of the US market in 2030, up from its prior forecast of 24%, while plug-in hybrids and extended-range electric vehicles will account for just 6% of US auto sales by then, down from a previous prediction of 10%. That will hurt US automakers' competitiveness and perhaps even leave them dependent on global EV leader China, Wakefield said. 'It makes it much more likely that they end up licensing or joint venturing or otherwise using platforms and EV technologies from China,' he said in an interview. The 'aggressive take-down of support' for EVs, will leave American automakers with the dubious distinction of being the world leader in big, gas-guzzling engines, a century-old technology that's in decline, Wakefield said. 'They'll have the world's best V8 engines by 2028,' Wakefield said of American automakers. 'They'll probably also have the world's only V8 engines by 2028.' Naughton writes for Bloomberg.
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Business Standard
19 hours ago
- Automotive
- Business Standard
Trump's tariffs seen raising US car prices by nearly $2,000 per vehicle
Car buyers will bear the brunt of the $30 billion cost of President Donald Trump's tariffs, driving up already high US auto prices by almost $2,000 per vehicle, according to consultant AlixPartners. The firm expects auto companies to pass along 80 per cent of the cost of Trump's tariffs — which it calculates as $1,760 more per car. AlixPartners, as part of its annual global automotive outlook, also cautioned that the administration's anti-electric vehicle policies risk relegating American automakers to bit players in the global EV market. 'These tariffs bring a big wall of cost,' Mark Wakefield, global auto market lead for AlixPartners, told reporters in an online briefing. We see 'consumers taking the majority of the hit.' General Motors Co. and Ford Motor Co. have already said they expect a $5 billion and $2.5 billion tariff impact this year, respectively, though they say they will find offsets in part through price adjustments. Those higher prices will result in about 1 million fewer vehicles sold in the US over the next three years, Wakefield said. But the consultant expects US auto sales to reach 17 million in 2030, 1 million more than last year, as the impact of tariffs abates. AlixPartners' predicted sales hit is more muted than some other projections because the firm sees tariff rates falling as the US negotiates trade deals with other countries. It forecasts the 25 per cent auto tariff will ultimately fall to 7.5 per cent on assembled autos, 5 per cent on parts and even lower on cars and parts that are compliant with the US-Mexico-Canada trade agreement. 'This tariff wall is not likely to last forever,' Wakefield said. What's likely to have a longer-lasting impact is the Trump administration's move to reduce and eliminate incentives to spur the sale of electric vehicles, such as the $7,500 consumer tax credit for purchasing a battery powered model, he said. That will steer car buyers away from EVs as they 'follow their pocketbook' and buy traditional gasoline-fueled vehicles, Wakefield said. AlixPartners slashed its forecast for EV sales in the US by nearly half. It now sees battery electric vehicles making up just 17 per cent of US auto sales in 2030, down from a previous prediction that EVs would make up 31 per cent of sales by then. Traditional internal combustion engine vehicles will account for half of US sales in 2030, up from AlixPartners' previous prediction that they would only make up about one-third of sales. The consultant sees traditional hybrids accounting for 27 per cent of the US market in 2030, up from its prior forecast of 24 per cent, while plug-in hybrids and extended-range electric vehicles will account for just 6 per cent of US auto sales by then, down from a previous prediction of 10 per cent. That will hurt US automakers' competitiveness and perhaps even leave them dependent on global EV leader China, Wakefield said. 'It makes it much more likely that they end up licensing or joint venturing or otherwise using platforms and EV technologies from China,' he said in an interview. The 'aggressive take-down of support' for EVs, will leave American automakers with the dubious distinction of being the world leader in big, gas-guzzling engines, a century-old technology that's in decline, Wakefield said. 'They'll have the world's best V8 engines by 2028,' Wakefield said of American automakers. 'They'll probably also have the world's only V8 engines by 2028.'
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Business Standard
4 days ago
- Business
- Business Standard
Trump returns to G7 summit he once loathed as Iran crisis deepens
Instead of speaking to allies about the fighting, Trump discussed the conflict in a Saturday call with the G-7's main adversary, Russian President Vladimir Putin Bloomberg By Josh Wingrove and Sakura Murakami President Donald Trump arrives in Canada as the center of attention for a Group of Seven summit of world leaders whose main purpose will be to mollify him — and one where spiraling conflict in the Middle East offers another test of its unity. Trump was traveling Sunday night to Kananaskis, Alberta, for the first big international summit of his second term. Wary of opening new rifts with the US president, other G7 leaders won't even try for a statement of unity on matters such as Ukraine or climate change. Trump has called for a ceasefire but is helping Israel defend itself, while others such as French President Emmanuel Macron have urged the sides to avoid further escalation. Instead of speaking to allies about the fighting, Trump discussed the conflict in a Saturday call with the G7's main adversary, Russian President Vladimir Putin, a central antagonist in a war with Ukraine that's also frustrated Trump. Macron, speaking to reporters on Sunday, dismissed the notion of Putin mediating the Middle East conflict, saying the Russian leader, given his flouting of international norms, could not 'be in any way a mediator.' More than a dozen leaders from around the world were set to join Trump at the Pomeroy Kananaskis Mountain Lodge looking to strike trade deals to stave off a fresh round of US tariffs as early as next month. The meeting's remote location means it will be inaccessible to protesters and give leaders freedom to meet Trump on neutral turf instead of under the glare of the cameras in the Oval Office where he's in control and playing to his domestic audience. Trade deals Leaders from Brazil, South Africa, India, and South Korea will be there seeking to protect their own interests, as will Ukraine's Volodymyr Zelenskiy, looking to shore up support for his nation's fight against Russia despite Trump's ambivalence. Mexico's President Claudia Sheinbaum is likely to get her first one-on-one in-person meeting with Trump, while also seeking a fresh US-Mexico-Canada trade deal along with the event's host, Prime Minister Mark Carney. The Canadian leader, meanwhile, will seek to balance standing up to Trump's calls to make Canada the 51st state while avoiding the flareups that turned past summits into displays of rancor and disunity. 'The best case scenario in my mind, coming out of this, is that there's no real blowups,' said Josh Lipsky, chair of international economics at the Atlantic Council think-tank. Trump has long considered such summits tedious, and used them to pick fights with fellow leaders. One of his first, the 2017 G-20 in Hamburg, was marked by widespread protests, with posters plastered around the city calling Trump a clown. An enduring image of his first G7, in Italy, was six leaders walking together while Trump traveled separately in a golf cart. A year later at a G7 meeting also in Canada, Trump made his most indelible mark on the summit circuit. A viral photo showed him sitting defiant, with arms crossed, staring up at then-German Chancellor Angela Merkel, while other leaders stood around her. He then upended the event by pulling out of the joint communique that had been forged in the meeting and firing an angry tweet at then-Prime Minister Justin Trudeau over the Canadian leader's criticisms of Trump's tariff policies. That photo, along with Trump's eruption, casts a 'long shadow' over this year's summit, said Caitlin Welsh, who served as a US summit official during Trump's first term and is now a program director with the Center for Strategic and International Studies. It showed 'that consensus outcomes could not be taken for granted in the G7 or G-20 or other bodies,' Welsh said. Even after that, leaders were never quite sure what to make of Trump. In 2019, a hot mic caught leaders — including Trudeau — at another summit griping about Trump running late. At President Joe Biden's first G7 in 2021, he declared 'America is back,' to which Macron shot back — 'For how long?' Now Trump returns, both to the summit sanctum and to Canada, after a bruising tariff war and his refusal to back down from the 51st state threat. That stoked widespread anger in the country and helped fuel Carney's spring election victory. Trump himself has claimed credit. Playing nice But while earlier summits saw Trump spar with counterparts, this batch of leaders have tended to try to play nice with Trump, soothing his ego and avoiding confrontations. And several, such as UK Prime Minister Keir Starmer, Italian Prime Minister Giorgia Meloni, German Chancellor Friedrich Merz, Macron and Carney have all had relatively successful — or at least unremarkable — meetings with Trump since his return to office. And there are widespread signs the bloc wants to maintain that approach. Macron is the sole holdover from Trump's first term. While he'll look to maintain pleasant relations with Trump, he visited Greenland on the way to Canada, a nod of support after Trump mused about annexing the Danish territory. Leaders are not preparing a joint communique this time around given that differences are too large on everything from climate change to artificial intelligence to women's empowerment. Instead they are set to issue statements on half a dozen subjects, though Ukraine isn't among them. The US will also push to discuss trade, expanding exports of American energy and AI development, a White House official said Friday in a briefing that made no direct mention of Iran. The leaders are also expected to discuss breaking their dependency on China for critical minerals, according to a German official. Trump has set so-called 'reciprocal' tariffs at 10 per cent for about five dozen countries and the EU, but has made a July 9 deadline to reach deals or see the tariffs rise again. That threat hangs over nearly every leader at the summit. Japanese Prime Minister Shigeru Ishiba has touted the progress made so far, as his trade negotiator makes near-weekly visits to the US to negotiate terms, but has also expressed caution about rushing into an agreement. Japan is seeking removal of the levies — and is a test-case of Trump's willingness to negotiate auto tariffs in particular. 'What's important is to achieve an agreement that's beneficial to both Japan and the US,' Ishiba said last week. 'We won't compromise Japan's interests by prioritizing a quick deal.'
Business Times
4 days ago
- Business
- Business Times
Trump returns to G7 he once loathed as Iran crisis intensifies
[WASHINGTON] US President Donald Trump arrives in Canada as the centre of attention for a Group of Seven (G7) summit of world leaders whose main purpose will be to mollify him – and one where spiralling conflict in the Middle East offers another test of its unity. Trump was travelling on Sunday (Jun 15) night to Kananaskis, Alberta, for the first big international summit of his second term. Wary of opening new rifts with the US president, other G7 leaders will not even try for a statement of unity on matters such as Ukraine or climate change. It's not even clear that they will be able to demonstrate a sense of common purpose over the conflict between Israel and Iran that began with Israeli attacks on Iranian nuclear sites late last week. Those strikes continued over the weekend, fanning fears of a regional war. Trump has called for a ceasefire but is helping Israel defend itself, while others such as French President Emmanuel Macron have urged the sides to avoid further escalation. Instead of speaking to allies about the fighting, Trump discussed the conflict in a Saturday call with the G7's main adversary, Russian President Vladimir Putin, a central antagonist in a war with Ukraine that's also frustrated Trump. Macron, speaking to reporters on Sunday, dismissed the notion of Putin mediating the Middle East conflict, saying the Russian leader, given his flouting of international norms, could not 'be in any way a mediator'. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up More than a dozen leaders from around the world were set to join Trump at the Pomeroy Kananaskis Mountain Lodge looking to strike trade deals to stave off a fresh round of US tariffs as early as next month. The meeting's remote location means it will be inaccessible to protesters and give leaders the freedom to meet Trump on neutral turf instead of under the glare of the cameras in the Oval Office where he's in control and playing to his domestic audience. Trade deals Leaders from Brazil, South Africa, India, and South Korea will be there seeking to protect their own interests, as will Ukraine's Volodymyr Zelensky, looking to shore up support for his nation's fight against Russia despite Trump's ambivalence. Mexico's President Claudia Sheinbaum is likely to get her first one-on-one in-person meeting with Trump, while also seeking a fresh US-Mexico-Canada trade deal along with the event's host, Prime Minister Mark Carney. The Canadian leader, meanwhile, will seek to balance standing up to Trump's calls to make Canada the 51st state while avoiding the flareups that turned past summits into displays of rancour and disunity. 'The best case scenario in my mind, coming out of this, is that there's no real blowups,' said Josh Lipsky, chair of international economics at the Atlantic Council think-tank. Trump has long considered such summits tedious, and used them to pick fights with fellow leaders. One of his first, the 2017 G20 in Hamburg, was marked by widespread protests, with posters plastered around the city calling Trump a clown. An enduring image of his first G7, in Italy, was six leaders walking together while Trump travelled separately in a golf cart. A year later at a G7 meeting also in Canada, Trump made his most indelible mark on the summit circuit. A viral photo showed him sitting defiant, with arms crossed, staring up at then-German Chancellor Angela Merkel, while other leaders stood around her. He then upended the event by pulling out of the joint communique that had been forged in the meeting and firing an angry tweet at then-Prime Minister Justin Trudeau over the Canadian leader's criticisms of Trump's tariff policies. That photo, along with Trump's eruption, casts a 'long shadow' over this year's summit, said Caitlin Welsh, who served as a US summit official during Trump's first term and is now a programme director with the Center for Strategic and International Studies. It showed 'that consensus outcomes could not be taken for granted in the G7 or G20 or other bodies,' Welsh said. Even after that, leaders were never quite sure what to make of Trump. In 2019, a hot mic caught leaders – including Trudeau – at another summit griping about Trump running late. At President Joe Biden's first G7 in 2021, he declared 'America is back,' to which Macron shot back – 'For how long?' Now Trump returns, both to the summit sanctum and to Canada, after a bruising tariff war and his refusal to back down from the 51st state threat. That stoked widespread anger in the country and helped fuel Carney's spring election victory. Trump himself has claimed credit. Playing nice But while earlier summits saw Trump spar with counterparts, this batch of leaders have tended to try to play nice with Trump, soothing his ego and avoiding confrontations. And several, such as UK Prime Minister Keir Starmer, Italian Prime Minister Giorgia Meloni, German Chancellor Friedrich Merz, Macron and Carney have all had relatively successful – or at least unremarkable – meetings with Trump since his return to office. And there are widespread signs the bloc wants to maintain that approach. Macron is the sole holdover from Trump's first term. While he will look to maintain pleasant relations with Trump, he visited Greenland on the way to Canada, a nod of support after Trump mused about annexing the Danish territory. Leaders are not preparing a joint communique this time around given that differences are too large on everything from climate change to artificial intelligence to women's empowerment. Instead, they are set to issue statements on half a dozen subjects, though Ukraine isn't among them. The US will also push to discuss trade, expanding exports of American energy and AI development, a White House official said on Friday in a briefing that made no direct mention of Iran. The leaders are also expected to discuss breaking their dependency on China for critical minerals, according to a German official. Trump has set so-called 'reciprocal' tariffs at 10 per cent for about five dozen countries and the EU, but has made a Jul 9 deadline to reach deals or see the tariffs rise again. That threat hangs over nearly every leader at the summit. Japanese Prime Minister Shigeru Ishiba has touted the progress made so far, as his trade negotiator makes near-weekly visits to the US to negotiate terms, but has also expressed caution about rushing into an agreement. Japan is seeking the removal of the levies – and is a test case of Trump's willingness to negotiate auto tariffs in particular. 'What's important is to achieve an agreement that's beneficial to both Japan and the US,' Ishiba said last week. 'We will not compromise Japan's interests by prioritising a quick deal.' BLOOMBERG
Vancouver Sun
4 days ago
- Politics
- Vancouver Sun
Trump dominates G7 where leaders will be bracing for trade clashes and Middle East conflict
President Donald Trump arrives in Canada as the center of attention for a Group of Seven summit of world leaders whose main purpose will be to mollify him — and one where spiralling conflict in the Middle East offers another test of its unity. Trump was travelling Sunday night to Kananaskis, Alta., for the first big international summit of his second term. Wary of opening new rifts with the U.S. president, other G7 leaders won't even try for a statement of unity on matters such as Ukraine or climate change. It's not even clear that they will be able to demonstrate a sense of common purpose over the conflict between Israel and Iran that began with Israeli attacks on Iranian nuclear sites late last week. Those strikes continued over the weekend, fanning fears of a regional war. Start your day with a roundup of B.C.-focused news and opinion. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Sunrise will soon be in your inbox. Please try again Interested in more newsletters? Browse here. Trump has called for a ceasefire but is helping Israel defend itself, while others such as French President Emmanuel Macron have urged the sides to avoid further escalation. Instead of speaking to allies about the fighting, Trump discussed the conflict in a Saturday call with the G7's main adversary, Russian President Vladimir Putin, a central antagonist in a war with Ukraine that's also frustrated Trump. Macron, speaking to reporters on Sunday, dismissed the notion of Putin mediating the Middle East conflict, saying the Russian leader, given his flouting of international norms, could not 'be in any way a mediator. More than a dozen leaders from around the world were set to join Trump at the Pomeroy Kananaskis Mountain Lodge looking to strike trade deals to stave off a fresh round of U.S. tariffs as early as next month. The meeting's remote location means it will be inaccessible to protesters and give leaders freedom to meet Trump on neutral turf instead of under the glare of the cameras in the Oval Office, where he's in control and playing to his domestic audience. Trade deals Leaders from Brazil, South Africa, India, and South Korea will be there seeking to protect their own interests, as will Ukraine's Volodymyr Zelenskiy, looking to shore up support for his nation's fight against Russia despite Trump's ambivalence. Mexico's President Claudia Sheinbaum is likely to get her first one-on-one in-person meeting with Trump, while also seeking a fresh US-Mexico-Canada trade deal along with the event's host, Prime Minister Mark Carney. The Canadian leader, meanwhile, will seek to balance standing up to Trump's calls to make Canada the 51st state while avoiding the flare-ups that turned past summits into displays of rancour and disunity. 'The best case scenario in my mind, coming out of this, is that there's no real blowups,' said Josh Lipsky, chair of international economics at the Atlantic Council think-tank. Trump has long considered such summits tedious, and used them to pick fights with fellow leaders. One of his first, the 2017 G-20 in Hamburg, was marked by widespread protests, with posters plastered around the city calling Trump a clown. An enduring image of his first G7, in Italy, was six leaders walking together while Trump travelled separately in a golf cart. A year later at a G7 meeting also in Canada, Trump made his most indelible mark on the summit circuit. A viral photo showed him sitting defiant, with arms crossed, staring up at then-German Chancellor Angela Merkel, while other leaders stood around her. He then upended the event by pulling out of the joint communique that had been forged in the meeting and firing an angry tweet at then-Prime Minister Justin Trudeau over the Canadian leader's criticisms of Trump's tariff policies. That photo, along with Trump's eruption, casts a 'long shadow' over this year's summit, said Caitlin Welsh, who served as a U.S. summit official during Trump's first term and is now a program director with the Center for Strategic and International Studies. It showed 'that consensus outcomes could not be taken for granted in the G7 or G-20 or other bodies,' Welsh said. Even after that, leaders were never quite sure what to make of Trump. In 2019, a hot mic caught leaders — including Trudeau — at another summit griping about Trump running late. At President Joe Biden's first G7 in 2021, he declared 'America is back,' to which Macron shot back — 'For how long?' Now Trump returns, both to the summit sanctum and to Canada, after a bruising tariff war and his refusal to back down from the 51st state threat. That stoked widespread anger in the country and helped fuel Carney's spring election victory. Trump himself has claimed credit. Playing nice But while earlier summits saw Trump spar with counterparts, this batch of leaders have tended to try to play nice with Trump, soothing his ego and avoiding confrontations. And several, such as UK Prime Minister Keir Starmer, Italian Prime Minister Giorgia Meloni, German Chancellor Friedrich Merz, Macron and Carney have all had relatively successful — or at least unremarkable — meetings with Trump since his return to office. And there are widespread signs the bloc wants to maintain that approach. Macron is the sole holdover from Trump's first term. While he'll look to maintain pleasant relations with Trump, he visited Greenland on the way to Canada, a nod of support after Trump mused about annexing the Danish territory. Leaders are not preparing a joint communique this time around given that differences are too large on everything from climate change to artificial intelligence to women's empowerment. Instead they are set to issue statements on half a dozen subjects, though Ukraine isn't among them. The U.S. will also push to discuss trade, expanding exports of American energy and AI development, a White House official said Friday in a briefing that made no direct mention of Iran. The leaders are also expected to discuss breaking their dependency on China for critical minerals, according to a German official. Trump has set so-called 'reciprocal' tariffs at 10% for about five dozen countries and the EU, but has made a July 9 deadline to reach deals or see the tariffs rise again. That threat hangs over nearly every leader at the summit. Japanese Prime Minister Shigeru Ishiba has touted the progress made so far, as his trade negotiator makes near-weekly visits to the U.S. to negotiate terms, but has also expressed caution about rushing into an agreement. Japan is seeking removal of the levies — and is a test-case of Trump's willingness to negotiate auto tariffs in particular. 'What's important is to achieve an agreement that's beneficial to both Japan and the US,' Ishiba said last week. 'We won't compromise Japan's interests by prioritizing a quick deal.' — With assistance from Arne Delfs, Ania Nussbaum, Donato Paolo Mancini, Brian Platt, Stephanie Lai, Ellen Milligan and Alex Morales. Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark and sign up for our daily newsletter, Posted, here .
