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Yahoo
an hour ago
- Yahoo
Trump tariffs don't spare his fans in EU
Hungarian Prime Minister Viktor Orban promised that the return of his "dear friend" Donald Trump as US president would usher in a new "golden age". But trade unionist Zoltan Laszlo says Hungary's auto industry has seen the opposite as the United States announced new tariffs, with order cancellations and workflow disruptions marking employees' day-to-day experience. With tariff rates rising from 2.5 percent before Trump's return to around 25 percent and finally to 15 percent, the "American tariff slalom" has caused nothing but chaos in the car industry, said Laszlo, who represents workers at Mexican automotive parts manufacturer Nemak's Hungarian plant. In recent years, Hungary and neighbouring Slovakia have become European manufacturing hubs for global car brands seeking lower labour costs, including British Jaguar Land Rover, German Mercedes and Japanese Suzuki. But due to the export-oriented nature of their automotive sectors, catering in part to the US market, they are among those EU nations hardest-hit by the latest tariffs slated to kick in on August 7. Despite hailing Trump's comeback and visiting him twice at his Mar-a-Lago luxury estate last year, Orban -- his closest EU ally -- was not spared the pain. - Distress calls - Neither were more favourable conditions extended to Slovakian Prime Minister Robert Fico, whose country is the world's largest automobile manufacturer per capita. According to analyst Matej Hornak, the incoming tariffs won't bode well. He warns of a drop in exports amounting to "several hundred million euros" and the loss of "10,000-12,000" jobs in the sector. After the announcement of the EU-US trade deal, Orban was quick to apportion blame to EU Commission president Ursula von der Leyen, saying Trump "ate" her "for breakfast". But in April, the mayor of the Hungarian city of Gyor, whose strong economic growth is closely linked to its car manufacturing plants, had already warned of possible cutbacks and layoffs. For the city, which is home to various global brands and more than a dozen different parts and component suppliers including Nemak, the fresh tariffs are a disaster. As one of the biggest employers in Hungary, German carmaker Volkswagen alone provides jobs for more than 12,000 people. Its main engine factory in Gyor produces some Audi-branded vehicles directly for the US market. The Hungarian government has said that it is still assessing the impact of the tariff rates, vowing that upcoming business deals with Washington could mitigate the negative effects of Trump's "America first" policy. - Difficult compromise - But more headwinds are ahead for Hungary and Slovakia, said Brussels-based geopolitical analyst Botond Feledy. "When it comes to European dealmaking, Trump now prioritises more geopolitically influential figures -- the main option for smaller nations such as Slovakia and Hungary is to join forces with others," he told AFP. But the "aggressive posturing" in the same vein of Trump's protectionist policies both countries adopted in recent months have isolated them among fellow EU countries, making compromises difficult, the expert added. Moreover, the stakes are high for Orban, whose 15-year rule has recently been challenged by former government insider-turned-rival Peter Magyar ahead of elections scheduled for next spring. "Dissatisfaction with the standard of living has made voters more critical, which is also reflected in the popularity ratings of the governing parties," said economist Zoltan Pogatsa, adding that "Hungary has been in a state of near stagnation for many years now". This year's economic "flying start" touted by Orban did not materialise, with the government further lowering the country's growth goal from the initial 3.4 to one percent. "So far, Trump's second presidency has only impacted the Hungarian economy through his tariff policy, which has been negative," Pogatsa added. At the Nemak plant, a recent warning strike has led to management promising to sort out the unpredictable work schedules caused by the tariff changes, which were "unhealthy and physically unbearable" and made "family and private life become incompatible with work", said Laszlo. pv-ros/kym/rl/tc
Yahoo
an hour ago
- Yahoo
Ellis, Alfredo spin following Stage 2 contact
Ryan Ellis' No. 71 Chevrolet brushes Anthony Alfredo's No. 42 Chevy at Iowa Speedway, resulting in both cars spinning during Stage 2.
Car and Driver
2 hours ago
- Car and Driver
Ford Recalling 312,000 Trucks, SUVs with Brake Booster Issue
Ford is recalling another 312,120 vehicles, this time over an issue with the electronic brake booster. The recall population is split among 2025 Ford F-150, Expedition, Bronco, Ranger, and 2025 Lincoln Navigator models, with the majority—217,969—being F-150 pickups. In affected models, the electronic brake booster model can enter a faulted state while driving, creating a total loss of brake boost. Ford's year of recalls continues, with the company issuing yet another, this time for 312,120 vehicles over an issue with the electronic brake booster. The recall population is limited to 2025 models and extends to certain Ford F-150, Expedition, Bronco, and Ranger models, along with the Lincoln Navigator. Ford According to documents associated with the recall, the issue stems from the electronic brake booster (EBB) module, which can shut off either during normal driving or while a driver-assist system (ADAS) is in use. Once in this faulted state, the car won't have any brake boost until the EBB module is reset along with the car's ignition cycle. The documents confirm that as of mid-July, Ford was aware of 37 warranty claims associated with the brake boost issue. Ford is also aware of one alleged low-speed crash related to the issue. No injuries or fires have been connected to the fault, according to NHTSA documents. Lincoln The documents show that the issue arises because the EBB module is susceptible to "normal but infrequent voltage disturbances." A momentary drop in voltage and a subsequent surge can result in a spike that causes the EBB motor to power off. If the brake boost is lost, the ABS, electronic stability control, and brake cluster warning lights will illuminate on the dash alongside warning messages. The loss in boost will also likely cause a change in brake pedal feel and increased pedal travel. The remedy for the issue is a simple software update for the EBB module. Ford expects to begin rolling out over-the-air updates sometime in August, though owners will also have the choice to bring their car to a local dealership for the install. Ford will begin notifying dealers of the crash on August 11, with owner notification letters scheduled to be sent on August 25. Owners concerned that their vehicle may be involved can check on the NHTSA recalls website now. Jack Fitzgerald Associate News Editor Jack Fitzgerald's love for cars stems from his as yet unshakable addiction to Formula 1. After a brief stint as a detailer for a local dealership group in college, he knew he needed a more permanent way to drive all the new cars he couldn't afford and decided to pursue a career in auto writing. By hounding his college professors at the University of Wisconsin-Milwaukee, he was able to travel Wisconsin seeking out stories in the auto world before landing his dream job at Car and Driver. His new goal is to delay the inevitable demise of his 2010 Volkswagen Golf. Read full bio
