Latest news with #USMCA
Time of India
a day ago
- Automotive
- Time of India
Americans may pay $2,000 more for each new car, thanks to Trump
Trump's plan of 'Making America Great Again' is likely to backfire and punish its own people and industry. His $30 billion worth auto tariffs are set to have a direct impact on car buyers, or plainly put, the Americans themselves will be bearing the brunt of it. As July approaches and with the tariffs taking effect, car prices are expected to shoot up by almost $2,000 per vehicle, driving up already high US auto prices, Bloomberg reported citing consultant AlixPartners. The firm estimates that automakers will pass along about 80 per cent of the tariff costs directly to customers, who will be paying around $1,760 more per car on average. As a result, US auto sales could drop by 1 million vehicles over the next three years. However, the firm expects a rebound to 17 million annual sales by 2030, a million more than last year, as tariff effects begin to ease. 'These tariffs bring a big wall of cost,' said Mark Wakefield, global auto market lead at AlixPartners, during an online briefing. 'We see consumers taking the majority of the hit.' Major US carmakers have already flagged the impact. General Motors expects a $5 billion hit from the tariffs this year, while Ford estimates $2.5 billion. Both companies say they plan to manage the blow, partly by adjusting prices. Live Events AlixPartners' forecast is less severe than others because it assumes tariffs will reduce over time as trade talks progress. The current 25 per cent tariff on imported cars may fall to 7.5 per cent on fully assembled vehicles and 5 per cent on parts, with even lower rates for vehicles that qualify under the US-Mexico-Canada Agreement (USMCA). 'This tariff wall is not likely to last forever,' Wakefield added. EV incentive Cuts may stall American auto innovation While tariffs may ease in the long term, a more lasting concern for the auto industry is the Trump administration's move to cut electric vehicle (EV) incentives. AlixPartners warned that scaling back support measures, such as the $7,500 consumer tax credit for EVs, will push buyers toward cheaper, gasoline-fueled vehicles. 'Car buyers will follow their pocketbook,' Wakefield said. As a result, the firm has sharply cut its forecast for US EV adoption. It now expects EVs to make up only 17 per cent of total vehicle sales in 2030, down significantly from an earlier projection of 31 per cent. Meanwhile, traditional internal combustion engine vehicles are expected to make up 50 per cent of the market, up from 33 per cent. Hybrid models are forecast to grow modestly to 27 per cent, while plug-in hybrids and extended-range EVs are expected to shrink to just 6 per cent, down from 10 per cent. For consumers, that could mean fewer affordable electric options and a deeper dependence on older, fuel-based technologies, just as the rest of the world moves ahead. The shift away from EVs could leave American automakers falling behind global competitors, especially as companies in China continue to lead in electric vehicle technology. 'It makes it much more likely that they end up licensing or joint venturing or otherwise using platforms and EV technologies from China,' Wakefield said. With fewer incentives and higher costs, the US risks becoming an outlier in clean transportation. 'They'll have the world's best V8 engines by 2028,' Wakefield added. 'They'll probably also have the world's only V8 engines by 2028.'
Time of India
3 days ago
- Politics
- Time of India
G7 in Canada: PM Carney meets Mexican President Sheinbaum, Trump border tensions and USMCA on cards?
Canadian Prime Minister Mark Carney met Mexican President Claudia Sheinbaum for a bilateral discussion at the G7 in his country. This comes as America's northern and southern neighbour struggle with Trump's border crackdown and tariffs, and a potential reworking of USMCA signed in Trump's first term as President. Show more Show less
Mint
4 days ago
- Business
- Mint
Red Lobster CEO Wins Back Diners With New Menu, Friendlier Service
(Bloomberg) -- Red Lobster's new CEO said customer feedback has improved significantly since the restaurant chain emerged from bankruptcy with a revamped menu and a renewed focus on hospitality. The chain monitors online reviews to gauge how happy diners are. Positive comments now far outweigh negative ones and overall ratings are trending well above the industry average, Chief Executive Officer Damola Adamolekun said in an interview. He credited the shift in part due to the company training workers to engage more with customers. 'If a guest comes in, somebody should be smiling to greet them at the host stand,' Adamolekun said. 'If a guest wants to use the bathroom, you escort them to the bathroom — you don't point.' Founded in Florida in 1968, Red Lobster expanded rapidly in the 1970s and 1980s and developed a loyal following for its cheddar biscuits. It was once a preeminent casual dining name, seen as a 'fancy' destination to celebrate graduations and other life events. More recently, expensive labor and lease costs along with a money-losing unlimited shrimp promotion helped push the closely held company into bankruptcy in May 2024. It's now looking to reconnect with diners and attract a new generation of fans even as a broader slowdown in restaurant traffic has hit casual-dining chains particularly hard. Adamolekun, who had previously led a turnaround at P.F. Chang's, was appointed to the top post at Red Lobster when it emerged from bankruptcy in September. Sales and traffic have improved since then, he said, without offering specifics. One of his first moves was refreshing the menu with new items such as lobster pappardelle pasta and bacon-wrapped scallops. The 36-year-old also brought back fan favorites including hush puppies and popcorn shrimp, while keeping the staple biscuits. Other moves have involved launching TV ads, beefing up the chain's social media presence and partnering with sports teams like Ice Cube's 3-on-3 basketball league. Adamolekun said he doesn't have any immediate plans to bring back unlimited shrimp, but he didn't rule it out in the future, noting the offer used to be profitable. In the meantime, Red Lobster has introduced appetizer deals and a $5 happy hour. It also has a $19.99 three-course 'shrimp sensation' promotion in select locations, which does make money, Adamolekun said. 'We want to have a core value offering at all times,' he said on a Bloomberg TV interview. 'Ongoing value is important to the guest, especially in a challenged macroeconomic environment.' The company has shifted some of its shrimp supply from China to countries like India to avoid steep tariffs imposed by the Trump administration. Red Lobster sources its lobster and crab from the US or Canada, which is exempt from many levies under the USMCA free-trade agreement. A top priority for Adamolekun is remodeling the chain's 545 restaurants so they're 'energetic, vibrant, inviting, warm.' He expects renovation costs to be about $500,000 or more for each location and said the process could take four to five years. He aims to open the first remodeled location in the next six months, potentially in Atlanta. Better-looking restaurants tend to drive repeat business, according to the CEO. 'Young people especially care about the look and feel of a restaurant,' he said. 'They care the most because they want to be able to take photos, they want to be able to post on social media.' --With assistance from Scarlet Fu, Romaine Bostick, Michael Hirtzer and Isis Almeida. More stories like this are available on
Los Angeles Times
4 days ago
- Business
- Los Angeles Times
Red Lobster CEO wins back diners with new menu, friendlier service
Red Lobster's new CEO said customer feedback has improved significantly since the restaurant chain emerged from bankruptcy with a revamped menu and a renewed focus on hospitality. The chain monitors online reviews to gauge how happy diners are. Positive comments now far outweigh negative ones and overall ratings are trending well above the industry average, Chief Executive Officer Damola Adamolekun said in an interview. He credited the shift in part due to the company training workers to engage more with customers. 'If a guest comes in, somebody should be smiling to greet them at the host stand,' Adamolekun said. 'If a guest wants to use the bathroom, you escort them to the bathroom — you don't point.' Founded in Florida in 1968, Red Lobster expanded rapidly in the 1970s and 1980s and developed a loyal following for its cheddar biscuits. It was once a preeminent casual dining name, seen as a 'fancy' destination to celebrate graduations and other life events. More recently, expensive labor and lease costs along with a money-losing unlimited shrimp promotion helped push the closely held company into bankruptcy in May 2024. It's now looking to reconnect with diners and attract a new generation of fans even as a broader slowdown in restaurant traffic has hit casual-dining chains particularly hard. Adamolekun, who had previously led a turnaround at P.F. Chang's, was appointed to the top post at Red Lobster when it emerged from bankruptcy in September. Sales and traffic have improved since then, he said, without offering specifics. One of his first moves was refreshing the menu with new items such as lobster pappardelle pasta and bacon-wrapped scallops. The 36-year-old also brought back fan favorites including hush puppies and popcorn shrimp, while keeping the staple biscuits. Other moves have involved launching TV ads, beefing up the chain's social media presence and partnering with sports teams like Ice Cube's 3-on-3 basketball league. Adamolekun said he doesn't have any immediate plans to bring back unlimited shrimp, but he didn't rule it out in the future, noting the offer used to be profitable. In the meantime, Red Lobster has introduced appetizer deals and a $5 happy hour. It also has a $19.99 three-course 'shrimp sensation' promotion in select locations, which does make money, Adamolekun said. 'We want to have a core value offering at all times,' he said on a Bloomberg TV interview. 'Ongoing value is important to the guest, especially in a challenged macroeconomic environment.' The company has shifted some of its shrimp supply from China to countries like India to avoid steep tariffs imposed by the Trump administration. Red Lobster sources its lobster and crab from the US or Canada, which is exempt from many levies under the USMCA free-trade agreement. A top priority for Adamolekun is remodeling the chain's 545 restaurants so they're 'energetic, vibrant, inviting, warm.' He expects renovation costs to be about $500,000 or more for each location and said the process could take four to five years. He aims to open the first remodeled location in the next six months, potentially in Atlanta. Better-looking restaurants tend to drive repeat business, according to the CEO. 'Young people especially care about the look and feel of a restaurant,' he said. 'They care the most because they want to be able to take photos, they want to be able to post on social media.' Sirtori writes for Bloomberg.
CNBC
4 days ago
- Business
- CNBC
As G7 leaders meet, allies ask: Is Trump with us or against us?
Ongoing trade instability and turmoil in Ukraine and the Middle East are set to dominate talks, as leaders of the world's largest advanced economic powers gather in Canada for this year's Group of Seven (G7) summit. With uncertainty over those major issues largely arising from the White House's economic and foreign policy, allies are likely to ask whether U.S. President Donald Trump stands with them, or against them on major geopolitical points. The G7 comprises the U.S., U.K., Canada, France, Germany, Italy and Japan, as well as representatives from the European Union and other guest participants. The leaders of Australia, Brazil, Mexico, Indonesia, Ukraine, South Africa and South Korea have also been invited to this year's gathering. These summits aim to facilitate a consensus on the biggest global economic and geopolitical challenges and to coordinate actions to tackle them. The problem for the group this year comes from within, however, with Trump's array of trade tariffs and a potential global trade war looming as live threats — barring for the U.K., which signed a trade deal with Washington in May. The summit takes place while Trump's 90-day pause on "reciprocal" tariffs is still in effect, with Japan and the EU looking to strike a deal before the July 9 deadline, when higher trade duties — currently lowered to 10% by Trump in the interim to allow deals to be negotiated — could return with a vengeance. Canada was hit with a 25% tariff on autos and 50% duty on steel and aluminum imports, while goods not covered by the USMCA trade pact, which includes Mexico, are also subject to duties. Canada retaliated with its own 25% tariff on U.S. imports, although it has suspended some of those in order to protect domestic industries. Bilateral meetings between Trump and leaders looking for a trade deal are expected to take place at the G7 summit over the next few days, but the odds of any big bang deals being struck is uncertain. Host Canada certainly looks to be avoiding any obvious signs of disunity, having abandoned the usual communique that's issued at the end of G7 summits on how the group plans to work together to tackle joint challenges. This could seek to avoid a repeat of the acrimonious conclusion to the previous summit in Canada back in 2018 when Trump, during his first term in office, retracted the U.S.' support for the joint statement. The summit in France in 2019 was the last gathering Trump attended. "The G7 was formed fifty years ago so the world's advanced-economy democracies could align on shared economic and geopolitical challenges. But what happens when the cause of instability is coming from inside the G7? That's the question confronting the leaders as they assemble this week in Kananaskis," John Lipsky, chair of international economics at the Atlantic Council, said in a research note ahead of the summit. "Trump will try to coordinate the [G7] group against China's economic coercion. But the rest of the leaders may turn back to Trump and say that this kind of coordination, which is at the heart of why the G7 works, would be easier if he weren't imposing tariffs on his allies," he added. There is also the thorny issue of support for Ukraine — or Russia's rehabilitation, with Trump on the fence about further sanctions on Moscow — as well as the escalating crisis in the Middle East, where recent attacks between Israel and Iran have left hundreds dead and raised concerns about the global economy. Israel's staunch ally the U.S. stepped in to help shoot down Iranian missiles, while other global leaders have called to de-escalate tensions. This backdrop of tariffs and conflict could well give rise to fireworks at the June summit in Canada, given Trump's often contrarian and mercurial nature, analysts say. "The last time Trump attended a G7 leaders' summit in Canada, in 2018, he treated it like a reality TV show," analysts at the Center for Strategic and International Studies said in analysis ahead of the meeting. "With Trump's tariff war in full swing and targeting the other countries in attendance, this meeting could be even more contentious than his last visit," they noted. To avert another disastrous end to the G7 summit, the CSIS said global leaders needed to acknowledge and act upon Trump's concerns "about U.S. global leadership." "In previous meetings, G7 members have made clear their interest in addressing technological advancements, public health, major wars, and other issues beyond the group's traditional mandate. With many international institutions today paralyzed by geopolitical rivalries, the world needs concerted action now more than ever," they noted.
