Decline in sales of Tesla cars was to be expected
In the early 1930s, Ford were the dominant car maker there and worried about coming up against the USA 's anti-trust laws because of this dominance.
READ MORE: Hebridean shop owners ordered to remove sign calling out Donald Trump
Henry Ford himself unintentionally solved the problem with his views on eugenics and support for Adolf Hitler. Once his views became publicised, this resulted in a collapse of sales and allowed others like Chrysler and GM to expand.
Drew Reid
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Reuters
19 minutes ago
- Reuters
European shares recover in broader gains; trade uncertainty persists
June 3 (Reuters) - European shares rebounded on Tuesday amid broader gains, while investors continued to monitor any developments on the U.S. trade policy front. The pan-European STOXX 600 (.STOXX), opens new tab index was up 0.2% as of 0707 GMT, after kicking off June on a slightly lower note. Some optimism remained after the White House said that Trump and his Chinese counterpart will likely speak this week, amid escalating trade tensions, even as investors remained cautious about the future of U.S. President Donald Trump's erratic tariffs. The Trump administration asked an appeals court to pause a second court ruling that had brought up legal hurdles for the duties, while pushing countries for their best trade offers by Wednesday. Euro zone inflation numbers are scheduled to be released on Tuesday, ahead of the European Central Bank's interest rate decision this week. UBS (UBSG.S), opens new tab gained 3.3% after Jefferies upgraded the bank's stock to "buy" from "hold". Julius Baer (BAER.S), opens new tab slipped 1.9%. The Swiss bank announced further cost-saving measures amounting to 130 million Swiss franc ($159.02 million) by 2028.
The Guardian
an hour ago
- The Guardian
UK will slump to 1% growth next year as Trump tariffs bite, says OECD
The UK's economic growth will be slower than expected this year and next as the damage caused by Donald Trump's tariff war hits trade and investment, according to a gloomy forecast by the Organisation for Economic Co-operation and Development (OECD). The international body downgraded its expectations for this year and next from a forecast made in March, pushing down UK growth from 1.4% to 1.2% in 2025 and from 1.2% to 1% next year. Constraints on Whitehall spending and higher than expected inflation also played a part in a downgrade, the OECD said. Almost all countries, including the UK, suffered downgrades in the latest growth forecasts by the Paris-based organisation, which said it was mostly responding to the uncertainty created by US tariffs on the outlook for the global economy. The OECD had forecast global growth would ease from 3.3% in 2024 to 3.1% in 2025 and 3% next year, but now expects a 'modest' 2.9% growth this year and next. The US, Mexican and Canadian economies are likely to be the worst affected by the ongoing tariff battles, the OECD said. A forecast for the US in March expected growth to reach 2.2% this year and 1.6% in 2026, but these estimates were cut to 1.6% and 1.5% respectively in the latest outlook. The OECD's judgment is likely to disappoint the UK chancellor, Rachel Reeves, who faces tough questions next month about her record when she announces the government's priorities for the next three years in a much-anticipated spending review. Government spending is constrained by the rising cost of health, pensions and defence, while the economy remains stagnant, limiting the rise in tax receipts. The chancellor will base her spending plans on forecasts by the Office for Budget Responsibility, which said in March – several weeks before Trump began to impose import tariffs – that the UK economy will grow by just 1% this year, but recover strongly to hit 1.9% next year. Álvaro Pereira, the OECD chief economist, said he was cautious about the UK's ability to withstand the uncertainty created by a global tariff war, which the OBR forecast was unable to take into account. 'We hope we have seen the worst of the tariffs and there will be more trade agreements, bringing some certainty to international trade. Our top priority must be to keep markets open for trade,' he added. Pereira said his forecasts were based on the main US tariffs remaining in place over at least the next two years – a 25% tariff on imports of steel, aluminium and cars and a 10% blanket tariff on all goods. 'In the past few months, we have seen a significant increase in trade barriers as well as in economic and trade policy uncertainty. This sharp rise in uncertainty has negatively impacted business and consumer confidence and is set to hold back trade and investment,' he said. 'Weakened economic prospects will be felt around the world, with almost no exception. Lower growth and less trade will hit incomes and slow job growth,' he added. Inflation was likely to remain 'sticky' in the UK over the next year, restricting the pace of interest rate cuts by the Bank of England, despite a slowing economy. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion 'Though we are still forecasting that inflation will come down to central bank targets by 2026 in most countries, it will now take longer to reach those targets. In the countries more affected by tariffs, inflation might even rise first before coming down,' he said. The OECD makes forecasts for all its 38 members before annual meetings in Paris this week. Its report on the UK found that, after a strong first three months of the year – during which gross domestic product (GDP) rose by 0.7% – 'momentum is weakening, with business sentiment rapidly deteriorating', before adding that 'consumer confidence remains depressed and has declined since the second half of 2024, while retail sales volumes have been volatile'. It urged the UK government to restrict day-to-day spending to provide the financial room to maintain higher levels of public investment. However, the government's limited budget headroom meant only small shocks could blow spending plans off course and force the Treasury to make further cuts. Reeves said in response to the report that the government's 'landmark trade deals' with the EU, US and India would help to cut costs for businesses, protect jobs and attract investment to the UK. She said: 'The UK was the fastest growing economy in the G7 for the first three months of this year and interest rates have been cut four times, but we know there's more to do.'
Daily Mail
an hour ago
- Daily Mail
Auto companies worry China's tariff response will STOP all US car production in days
Every automotive part that enters the US is slapped with a 25 percent tariff. The tariffs, imposed by President Donald Trump, are expected to reinvigorate an automotive manufacturing sector in the US that has experienced a decades-long malaise. But China responded to the auto tariff — and its separate, even higher product levies — by stopping nearly all trade on rare earth magnets. The magnets are indispensable for modern car production. They're used in dozens of vehicle parts, including brakes, seats, screens, and ignitions. But more than two decades after domestic magnet-making factories migrated to China, the US now produces almost none. Without access to Chinese supplies, factories across the Midwest and the South could soon face shutdowns, automakers and analysts are warning. And US carmakers are running out. 'This could be similar to the chip shortage where automakers simply can't produce the vehicle if the rare earths ban remains in place,' Seth Goldstein, a strategist and Tesla expert for MorningStar, told 'Tesla is planning to remove rare earths magnets from their EV motors, so the company should have a limited impact on its EV sales.' Beijing officials stopped sending US automakers the magnets in early April. The materials, which were last built in the US at scale in the late 1990s, are scattered throughout vehicles. A modern, power-adjusting seat can use as many as 12 individual magnets. In May, the trade groups representing some of the biggest automakers in the US — including General Motors, Toyota, Volkswagen, and Hyundai — sent a letter to President Trump warning about the potential US manufacturing issues because of the dwindling magnet supply. 'Without reliable access to these elements and magnets, automotive suppliers will be unable to produce critical automotive components,' the letter from the Alliance for Automotive Innovation said. 'In severe cases, this could include the need for reduced production volumes or even a shutdown of vehicle assembly lines.' Meanwhile, the problem could get worse, even if Beijing officials re-open the magnet floodgates. Some Chinese producers have suspended operations altogether, waiting for export approvals. Car companies have been grappling with how to react to tariffs - now, they might have to deal with dwindling parts supplies The resulting delays have jammed up supply chains, leaving automakers scrambling to secure critical inputs. The trade blockages are also colliding with dwindling supplies on new vehicle lots. Some car companies are facing shortages of product on their new vehicle lots: Toyota, for example, has fewer than 30 days' worth of vehicles at many of their American dealerships. These compounding issues could send the price for remaining vehicles further through the roof as demand outstrips supply, and American manufacturing can't produce enough. It currently costs the average American more than $49,000 to drive a new vehicle off a dealership lot. Goldstein pointed out that there are signs for hope: Saudi Arabia, a country that is increasing trade relations with the US, is investing in rare earth production. 'Any shortage could prove temporary,' Goldstein added. But for now, the manufacturing impact extends well beyond cars, too. Factory automation, semiconductors, and critical military components all rely on high-performance magnets made from rare earth elements. President Trump recently lashed out against Chinese officials for exploiting these gaps in American production. 'China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US,' Trump said in a post on his Truth Social platform. Last week, US Treasury Secretary Scott Bessent said he hoped that Trump and top Chinese officials would convene to discuss a new truce in the ongoing trade war. 'I believe we'll see something very soon,' he reassured CBS News.
