Tariff Trouble: Why Renault, Volvo & Stellantis are losing billions
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
3 minutes ago
- Yahoo
Trump's Pay-For-Play Chips Deal Generates Alarm and Optimism
(Bloomberg) -- President Donald Trump's controversial plan to take a cut of revenue from chip sales to China is leading to concerns that the US government will find new ways to start charging companies for a range of business activities with other countries. Experts and people familiar with the matter said the surprise deal, in which Nvidia Corp. and Advanced Micro Devices Inc. agreed to pay 15% of their revenues from Chinese AI chip sales to the US, potentially provides a path to enter the Chinese market despite severe export controls, tariffs and other trade barriers. The US-Canadian Road Safety Gap Is Getting Wider Sunseeking Germans Face Swiss Backlash Over Alpine Holiday Congestion To Head Off Severe Storm Surges, Nova Scotia Invests in 'Living Shorelines' Five Years After Black Lives Matter, Brussels' Colonial Statues Remain For Homeless Cyclists, Bikes Bring an Escape From the Streets The question that companies must now confront is whether the risk is worth taking. People familiar with the matter, who asked not to be identified discussing private deliberations, said companies are struggling to figure out what the president's order means for their future, especially given the unpredictable nature of Trump's decision-making. 'This is truly bizarre and unusual, and the troubling thing — beyond the individual instances of AMD and Nvidia — is the possibility that this will be expanded,' said Gary Hufbauer, a senior fellow at the Peterson Institute for International Economics. 'Everything is now 'national security,' according to the new definition, which means it's all subject to export licenses and then they give you a license based on your contribution.' There are concerns that US trade agencies could begin charging fees to companies every time there's a meeting to discuss tariffs, according to people familiar with the matter who asked not to be identified discussing private deliberations. The Commerce Department's Bureau of Industry and Security, which issues export licenses, wasn't consulted about the revenue deal, according to people familiar with the matter who asked not to be identified discussing private conversations. Trump administration officials defend the idea as a smart way to generate revenue for the US government and suggest it will extend well beyond the chips sector. 'I think we could see it in other industries over time,' Treasury Secretary Scott Bessent said in an interview with Bloomberg Television on Wednesday. 'I think right now this is unique, but now that we have the model and the beta tests, why not expand it?' Bessent defended the deal and rejected any national-security concerns around the decision to sell Nvidia's H20 chip to China — something that had been earlier barred for fear of giving China a boost in the artificial-intelligence race. 'There are no national security concerns here,' Bessent said. 'We would not sell any of the advanced chips. So, the H20, I don't know whether you'd say they're four, five, six levels down the chips stack.' Either way, the deal highlights how Trump has pushed to open a wave of new revenue streams including by taking ownership shares of companies or extracting higher fees to live or work in the US. The US is weighing sales of a so-called 'gold card' residency permit, it won a 'golden share' to have direct say over corporate actions by United States Steel Corp., and it's secured investment pledges and potential revenue-sharing in country-level tariff talks. That's aside from the barrage of product tariffs that have at times left massive dislocations in globally traded markets. The matter further surprised China hawks in Congress, who have been unimpressed by the administration's reassurances. Rep. John Moolenaar, the Michigan Republican who chairs the US House Select Committee on China, questioned the legal basis for the move and suggested it does an end-run around controls put in place to limit the sale of sensitive technology to US adversaries. 'Export controls are a front-line defense in protecting our national security, and we should not set a precedent that incentivizes the government to grant licenses to sell China technology that will enhance its AI capabilities,' he said. It also raises questions about where the administration will steer the revenue. Trump has mused about issuing tariff rebate checks — though he has yet to seriously pursue the idea — while at other times he's said it would go toward narrowing the large budget deficit. The administration had debated launching a sovereign wealth fund before shelving those plans for now. It's too soon to say whether the administration will seek to revive the fund and steer revenue there, one official familiar with deliberations said. 'Trump's aides argue that these measures will strengthen America's AI leadership by maximizing its global influence and market share,' Hal Brands, a professor at the Johns Hopkins School of Advanced International Studies and a former Pentagon official, wrote in Bloomberg Opinion. 'Yet it is also possible that they will simply eat into America's innovation advantage.' --With assistance from Mackenzie Hawkins and Derek Wallbank. (Updates with details of consultation process in fifth paragraph.) Americans Are Getting Priced Out of Homeownership at Record Rates Dubai's Housing Boom Is Stoking Fears of Another Crash Bessent on Tariffs, Deficits and Embracing Trump's Economic Plan Why It's Actually a Good Time to Buy a House, According to a Zillow Economist The Electric Pickup Truck Boom Turned Into a Big Bust ©2025 Bloomberg L.P. Sign in to access your portfolio
UPI
6 minutes ago
- UPI
Trump revokes Biden antitrust EO targeting monopolies
President Donald Trump on Wednesday signed an executive order revoking a Biden-era antitrust initiative. Photo by Will Oliver/UPI | License Photo Aug. 14 (UPI) -- President Donald Trump on Wednesday rescinded a signature Joe Biden-era initiative aimed at promoting competition in the U.S. economy and curbing monopolies, especially in the technology industry. Trump revoked Biden's Executive Order 14036 with an executive order of his own. The far-ranging EO 14036 was signed by Biden in July 2021 to bolster antitrust enforcement to "promote the interests of American workers, businesses and consumers" and protect them from economic consolidation. Trump offered no reason for the revocation, though the Justice Department celebrated the move, saying it will use this as an opportunity to "recalibrate and modernize" its approach to competition policy. "America First Antitrust focuses on empowering the American people in the free markets, not enabling regulators and bureaucrats to prescribe outcomes," Assistant Attorney General Abigail Slater of the Justice Department's Antitrust Division said in a statement. "We are unleashing the new American Golden Age through antitrust enforcement that removes barriers to innovation and opportunity and limits regulatory burdens on free competition." The Justice Department also criticized the Biden initiative as "overly prescriptive and burdensome," and said that the Trump administration is focused on crafting executive orders that are "tailored" and call for lowering drug prices and reducing regulatory barriers.
Wall Street Journal
an hour ago
- Wall Street Journal
Chinese Imports Fell During Trump's First Term. It's Happening Again.
President Trump recently delayed for 90 days raising tariffs on China to give the two sides more time to negotiate a trade deal. Where the sides ultimately end up is an open question: The president hasn't said how much more he will impose on China beyond the 30% currently in place if a deal isn't reached. But this much is clear: The U.S.'s reliance on Chinese goods has fallen off since Trump first put tariffs on China in 2018.
