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Toyota's electric vehicle is about to get a major upgrade. Here's why it could use one

Toyota's electric vehicle is about to get a major upgrade. Here's why it could use one

USA Today14-05-2025

Toyota's electric vehicle is about to get a major upgrade. Here's why it could use one The bZ4X will transform into the bZ for the 2026 model year. The bZ has better performance specs and could be more appealing to drivers.
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Self-driving tech coming to personally owned vehicles
Waymo & Toyota have announced a partnership to co-develop autonomous vehicle platforms, aiming to integrate Waymo's self-driving technology into Toyota's POV's.
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The Toyota bZ4X is changing its name and getting better specs.
Toyota bZ4X sales lagged behind rivals, but new upgrade could be game-changer for the company.
New 2026 Toyota bZ will be better-positioned to compete against rivals based on horsepower and range.
The Toyota bZ4X is the company's first mass-produced electric SUV for North America. Toyota sold just 9,329 bZ4X models in 2023 and 18,570 in 2024, as reported by Electrek.com. To put that number into perspective, Hyundai sold 33,918 Ioniq 5 small electric SUV models in 2023 and 44,400 models in 2024.
The bZ4X hasn't been a huge success compared to class rivals, but Toyota is breathing new life into the nameplate. Say hello to the bZ, which Toyota claims offers "more range, more technology, and more driving acceleration."
The Toyota bZ4X is being outsold by rivals
When the Toyota bZ4X first hit the scene in 2022, competition in the small electric SUV segment was already fierce. Tesla was selling Model Ys like hotcakes internationally and Volkswagen was on its heels with the Volkswagen ID.4.
. @Toyota has unveiled significant updates for its 2026 bZ All Electric SUV, enhancing its range, charging capabilities, and design. The compact SUV, now simply named the Toyota bZ (previously bZ4X), introduces a larger 74.7-kWh battery option, improved power output, and a… pic.twitter.com/VgzEtfkmeb — The EV Report (@The_EV_Report) May 13, 2025
Hyundai Motor Company's Hyundai and Kia brands both launched small electric SUVs: the Hyundai Ioniq 5 and Kia EV6. Even the Blue Oval joined in on the action with the Ford Mustang Mach-E. Despite being a global leader in hybrid vehicle production, Toyota was late to the battery electric vehicle party.
Toyota chairman Akio Toyoda "refused to give EV development top priority" according to Forbes. So, by the time the bZ4X was available, there were several alternatives that offered more power, range, and standard features.
Sales have improved, but the bZ4X doesn't have a competitive edge over some of its biggest rivals. Hence Toyota's decision to completely reintroduce the nameplate as the Toyota bZ.
Toyota announces new name and major upgrades for electric vehicle
The 2026 Toyota bZ drops the "4X" from its name. That's far from the only change the Japanese company is making to its only fully-electric vehicle for the U.S. market.
The upcoming 2026 Toyota bZ also features an exterior redesign, more standard driving range, and some tech upgrades, according to CNBC. The nameplate is getting serious updates that will make the electric SUV more appealing.
Previous bZ4X models have been easily eclipsed by competitors, as reflected in sales numbers. A new design and improved performance specs could give the new bZ a better chance at competing with the best models in its segment.
What's new for the 2026 Toyota bZ?
New 2026 Toyota bZ features, specs, and upgrades include (but aren't limited to):
Increased driving range (up 62 miles from 252 miles on a single charge to 314 miles)
Standard NACS (North American Charging Standard) port, giving it access to Tesla superchargers
Updated interior/exterior styling
Quicker charging time (10%-80% in around 30 minutes via DC fast charging)
Increased horsepower (221 for front-wheel drive, 338 for all-wheel drive)
Overall, Toyota is making major changes to its small electric SUV, from its name to its most important performance specs. Increased horsepower can give the EV better driving dynamics.
More driving range makes the SUV more convenient to drive. Finally, quicker charging times makes it more appealing for folks with range anxiety. We'll have to wait and see how the 2026 Toyota bZ is received during the second half of this year. That said, its specs show great promise. Pricing for the 2026 Toyota bZ has yet to be released.

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Tough on Terrain, Easy on Your Wallet: Budget Off-Road SUVs That Crush It
Tough on Terrain, Easy on Your Wallet: Budget Off-Road SUVs That Crush It

Yahoo

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Tough on Terrain, Easy on Your Wallet: Budget Off-Road SUVs That Crush It

Over the past few decades, the auto industry has steadily blurred the definition of what an SUV really is. What once described large, rugged vehicles built for tough terrain now includes everything from compact crossovers to lifted hatchbacks. Today, some so-called SUVs start around $20,000 and don't even come with all-wheel drive, making them better suited for school drop-offs than off-road adventures. If you're looking for something more capable, a vehicle that can actually handle trails, snow, and rough terrain, then you're in the right place. We chose these SUVs based on their price first and foremost. If it's brand new, we've chosen the trim level that fits within this budget, and the prices are correct at the time of publication. If it's used, we reference the market valuation website for the current value. As for the off-road capability, we use the opinions and experience of professional automotive journalists who have driven these SUVs and tested them in the right conditions. Wherever we mention stats, such as ground clearance, etc., they are the official figures claimed by the automakers. So, what kind of SUV can you buy for $40,000 or less and not have to worry about road conditions? Let's see… Easily one of the most obvious choices. The Wrangler is one of America's favorite off-roader SUVs, and despite all the jokes and stereotypes surrounding both it and the Jeep brand as a whole, it still has some good value to bring. Available as a three-door or five-door, the Wrangler is a genuinely capable off-roader right from the factory. The latest one is offered with 35" tires, giving it an almost ridiculous 13" ground clearance. You can also get the 2025 Wrangler as a plug-in hybrid, and it's even possible to spec it with an optional winch. For $40,000, you'll have to settle for a base Sport if you want four doors, but if you're fine with a two-door, add $190 to the budget, and you'll have a more specced-out Willys. We'd love to include the 2025 4Runner in this roundup, but sadly, that car starts from $40,000. Instead, the fifth-generation 4Runner will have to do. Actually, that doesn't sound right. The fifth-generation 4Runner will most certainly do. Launched in 2010 and staying in production for a decade and a half, the fifth-generation 4Runner was one of the last truly old-school SUVs on the market. While everyone transitioned to hybrids and smaller engines, the 4Runner was chugging away with a big 4.0-liter V6 and a five-speed automatic, as reported by TrueCar. YouTuber Doug DeMuro also demonstrated how old school it was in his review, including the persistent use of a regular key. places the fifth-gen 4Runner at around $33,000. You might need to go for a higher mileage example, but this is a Toyota SUV, so that shouldn't be much of a problem. Easily one of the greatest comebacks in automotive history. After decades of consideration and teasing, Ford finally brought back the Bronco in 2020 as a proper competitor to the Jeep Wrangler. If you want a brand-new Bronco, the basic ones start from just under $40,000. It's a better idea to go through the classifieds for certified pre-owned or leftover inventory. Even though values the Bronco at around $70,000, if you dig past all the hideous, modified examples, you could get a Bronco with the Sasquatch package for around $36,000. You definitely want the Sasquatch because that's the one with the locking diffs, larger tires, and beadlock wheels. That's not to say the regular Bronco isn't capable enough already, as Elana Scherr of Car and Driver discovered. The Mercedes G-Class guarantees off-road ability in the same way that a sunny day guarantees a blue sky. Starting its life as a military vehicle, the G-Wagen has become one of the most iconic and notoriously capable off-roaders of all time. It oozes cool factor from every angle, and that has meant, among other things, sky-high values. Obviously, $40,000 is nowhere near enough for a brand-new Rodeo Drive spec G-Class. For this kind of money, you'll be looking at an imported W463 G Wagen, meaning anything from the early '90s until about 2000 or so. Although they have less tech than the newest ones, Jonathan Bryce of Autocar reports that they still have a decent amount of creature comforts and some pretty unstoppable diesel engines. Many of them are now legal to import to the States. Even though Classic values the diesel G-Wagens of this vintage at around $45,000, some are going for $35,000 or even around $25,000. This is the Toyota SUV that was gone too soon, and it needs to be brought back. The FJ Cruiser was a tribute band to the original FJ40 Land Cruiser, hence the name, and it was a more fun way to have an off-roader SUV. Everything about this thing oozes style and character, from the half-size rear doors to the general shape and the trio (yes, really) of windshield wipers. It's also tough and durable on the inside, the powertrains are reliable, as Vlad Radu of Autoevolution reports, and the styling is not just for show: it's genuinely capable. For $40,000, you might get lucky and find one of the Trail Team's versions. If you want to play it safe, Classic places the regular FJ Cruisers at around $28,000 on average, and for closer to $40,000, you'll have a mint condition one with low miles. This also means that the FJ Cruiser doesn't really do depreciation. Another off-roader SUV that disappeared from the market a little bit too soon. The Xterra was, ostensibly, an SUV version of the Frontier pickup truck. It aimed to offer genuine capability in a smaller footprint and at a more affordable price. As Zach Bowman of MotorTrend reported, it doesn't really drive like a bulky lifted car on the road, but when duty calls, the Xterra will respond every time. The second-generation Xterra received some nicer off-road hardware, including, as Ron Kiino of C&D reported, a proper locking rear differential. The first-generation cars had a rear LSD, but they were still plenty capable. Classic places both generations of the Xterra at around $13,000 on average, and that kind of money is plenty enough for a well-kept example with the off-roading upgrades. The third-gen Montero, known as the Pajero or Shogun in other markets, blends comfort and off-road performance with a surprising amount of refinement. While earlier Monteros were more utilitarian, this version embraced modern comforts without sacrificing its serious 4WD chops. With a unibody chassis and fully independent suspension, it may not be a rock crawler like a Wrangler, but it's extremely capable on rough trails. Most examples fall in the $6,000–$12,000 range, depending on condition, so you've got room in the budget for tires and a mild lift. Some of you may not know, but throughout most of the world, Toyota offers a smaller version of the Land Cruiser called the Land Cruiser Prado. That's essentially what the 250 Series is now, and Gero Lilleike of confirms it still carries that same Prado name overseas. Technically, there was a way to have a Prado in North America, too, but it had a Lexus badge instead of a Toyota one. The GX first came to North America in 2002, but we're focusing on the second-generation J150 here. The Lexus GX enjoyed V8 power in the States, which its overseas counterpart couldn't brag about. While it did focus a lot on luxury, Jason Fogelson of Forbes reported that the J150 GX has permanent 4WD and a standard locking center diff, which made overlanding as easy as pie. According to Classic, second-generation GX models go for around $27,000 on average. GM doesn't exactly have a stellar reputation for off-roaders, but the original TrailBlazer is a dark horse. It came with a robust 4.2-liter inline-6 making 275 horsepower, solid towing capability, and optional 4WD with low range. The platform was shared with the GMC Envoy and a few others, but the TrailBlazer stood out for its rugged utility. It's not the flashiest SUV out there, but with used prices starting at just a couple of thousand dollars, according to Kelley Blue Book, it's a dirt-cheap ticket to your favorite trailhead. If you're looking for a full-size SUV that combines comfort with genuine off-road chops, the Z71 trim of the Chevrolet Tahoe is a solid pick. Available across multiple generations, the Z71 package added off-road suspension, skid plates, beefier tires, and a locking rear differential, features that helped transform the Tahoe from suburban hauler to backcountry bruiser. Despite its size, the Tahoe Z71 is surprisingly capable off-road, especially when paired with the 5.3-liter V8 engine. Parts availability is excellent, reliability is solid, and there's plenty of space for gear or passengers. J.D. Power lists average values for 2004 Z71 models around $4,225–$9,500, making them a budget-friendly way to explore the wild without sacrificing daily drivability. Isuzu pulled out of the U.S. market a long time ago. The Japanese automaker did not leave without a bang, however. The VehiCROSS is one of the strangest, most admirable SUVs to emerge in the late 90s and the early 2000s. It was offered exclusively with three doors and had some truly ridiculous (in a good way) styling, the most notable aspect being the massive tires. As Frank Markus of Car and Driver reported, the VehiCROSS had beefy drivetrain components designed not just to go off-road but to go off-road fast. In that regard, the VehiCROSS and its Baja capabilities were way ahead of their time. You won't be surprised to hear that this is a very rare vehicle, but Classic claims that the average value hovers around $11,000, though nicer examples are closer to $20,000. Sometimes, having an off-roader that works most of the time is no fun. The Land Rover LR3, or the Discovery 3, as it was called in the rest of the world, is something like a more utilitarian Range Rover with three-row seating. Land Rover doesn't skip out when it comes to off-roading, and the LR3 is no exception. Mack Hogan of Road and Track absolutely loved his time off-roading a mostly stock LR3. It's an immensely capable SUV while also being luxurious, full of charm, and offering some exciting powertrains. places the LR3 at around $13,000 on average, though you want to avoid the four-figure, high-mileage examples for optimal results. You should also avoid the TMU (total mileage unknown) stuff and anything without proper maintenance and records. One Reddit user confirms that proper maintenance is a top priority for these cars. Despite the bro-truck reputation, the H3 is more than just a mall crawler fashion statement. It's the most normal-sized Hummer and shares underpinnings with the Chevy Colorado. The H3 has full-time 4WD with optional rear locking diff and serious ground clearance (up to 9.7"), and steep approach/departure angles. It's also one of the few Hummers you can buy for less than $20K and not feel guilty about modifying. If you're looking for a solid trail SUV with plenty of presence, the H3 is an excellent choice. Despite Jeep's somewhat bad reputation in the automotive world, the XJ Cherokee is one of the automaker's greatest hits. Launched at the very end of the 1980s, this boxy workhorse introduced something to the SUV world that would become the gold standard: unibody construction. The XJ Cherokee was one of the first production SUVs to use a unibody instead of body-on-frame, something that Jerrod Jones of MotorTrend covers in great detail. That didn't mean the XJ Cherokee was not capable of off-roading, even if it did require a few small modifications. What's more, you could have it with Jeep's 4.0-liter inline-6, an engine one Reddit user claims is quite literally unstoppable. According to Classic, on average, XJ Cherokees are going for around $13,000, though the nicely kept examples are closer to $20,000. One of a handful of Suzuki models that Americans fondly remember. Also briefly known as the Geo Tracker, the Suzuki Sidekick was the North American version of the Vitara/Escudo, and it was a pretty big change of pace for the SUV market at the time. David Tracy of the Autopian makes it clear that this is not an SUV we should mock based on appearances. The Sidekick stood out due to its comparatively small dimensions, and it was jam-packed with personality. It looks cool even today. When it comes to SUVs, Suzuki tends to focus on off-road capability, and the Sidekick is no exception. It's a fun way to go further off-road than any vehicle this size has any right to do, and you won't have to part ways with a ton of cash. Considering that these go for $8,000 on average, according to Classic, it's an affordable way to venture off-road. The Grand Vitara is one of the most overlooked modern compact SUVs with legitimate off-road capability. Unlike most of its crossover competitors, it used a ladder-frame-on-unibody design with a real low-range transfer case. This was a decent off-road SUV straight off the showroom floor, and with modest mods like all-terrain tires and a slight lift, it becomes a surprisingly competent trail runner. Best of all, you can scoop one up for around $8,000, leaving plenty of headroom in your budget for personalization. Before the Explorer became a mall crawler, the early models were proper off-road rigs. The first-gen Explorer shared much of its DNA with the rugged Ranger pickup, including a solid rear axle, body-on-frame construction, and a torque-rich 4.0-liter V6. With the optional 4WD system and available 5-speed manual, these SUVs could hold their own on rocky trails. They're not as refined as newer models, but they're easy to maintain and built to take a beating. Best of all, you can find clean examples for well under $5,000, leaving plenty of room in the budget for upgrades. The Liberty may not have the legendary status of the Wrangler, but the Renegade trim brought legit off-road cred to Jeep's smaller SUV. It featured skid plates, a locking center differential, and beefier suspension components, plus the boxy styling and roof lights gave it a trail-ready attitude. Under the hood was a 3.7-liter V6 paired with a proper 4WD system. It's not as hardcore as a Wrangler, but it'll get you down a muddy trail without breaking a sweat. According to Kelley Blue Book, used prices hover around $3,000–$6,000, making it one of the cheapest ways into the Jeep lifestyle. Before the Durango went full soccer-mom SUV, the first-generation model was a decent off-roader. Built on a modified Dakota pickup chassis, it came with V8 power, optional 4WD with a low-range transfer case, and seating for up to seven. It wasn't luxurious, but it was rugged and full of attitude. You can find one of these listed for around $5,000–$7,000, depending on mileage and condition, which makes it one of the most affordable ways to obtain V8-powered off-road capability. One of the most badge-engineered cars in history, the Isuzu Rodeo was marketed under about a dozen other brands and model names. The Rodeo is somewhat of a cult classic SUV nowadays, and it's a pretty interesting off-roader. Christian Hazel of MotorTrend singles out the Rodeo as a great first off-roader since it doesn't lose all talent when it's on the pavement. It's decently drivable on the road, but when you want to go off-roading, you won't have a hard time. The most desirable Rodeos use the 3.2-liter V6, and Classic places the average value at around $8,000. You might have to pay a little bit more for the nicest ones, though. Many off-road SUVs come with a hefty price tag, and even then, they often need expensive modifications to handle serious terrain. Between upgrades, lift kits, and aftermarket gear, costs can climb quickly. But the models featured here prove you don't need to break the bank to get true off-road capability. With a budget of around $40,000, you can find an SUV that's ready for adventure straight from the factory, no major upgrades required. Just a sense of direction and a willingness to explore.

Trump tariffs live updates: Trump and China's Xi Jinping speak at last, agree to more talks
Trump tariffs live updates: Trump and China's Xi Jinping speak at last, agree to more talks

Yahoo

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Trump tariffs live updates: Trump and China's Xi Jinping speak at last, agree to more talks

President Trump and Chinese leader Xi Jinping spoke on Thursday, and both countries pledged to restart tariff and trade talks in the coming days. Trump hailed the call as "positive" on Thursday, with both leaders inviting the other to visit their respective countries. Chinese state media said Xi urged Trump to remove 'negative' trade measures on his country. Trump said he would have a team led by Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and US Trade Representative Jamieson Greer shepherd the talks. The call came after weeks of Trump publicly pushing for the talk, as US-China tensions have risen in the aftermath of the countries' trade truce reached in mid-May in Geneva. Both countries have accused the other of breaching that truce while ratcheting up pressure on other issues. On Wednesday, a US auto parts group urged immediate action on one of those bubbly issues: China's tighter controls on rare earth exports. The group warned the move could soon disrupt car production. China processes over 90% of these minerals, which are used in motors and cameras, among other things. Car giants, such as General Motors (GM), Ford (F), and Toyota (TM), joined the call for help. China's rare earth curbs are seen as part of the wider trade tensions with the US. "There should no longer be any questions respecting the complexity of Rare Earth products," Trump said Thursday. Read more: What Trump's tariffs mean for the economy and your wallet Trump's call with Xi came as the US is pushing countries to speed up trade talks. The White House confirmed that the US sent a letter to partners as a "friendly reminder" that Trump's self-imposed 90-day pause on sweeping "reciprocal" tariffs is set to expire in early July. White House advisers have for weeks promised trade deals in the "not-too-distant future," with the only announced agreement so far coming with the United Kingdom. Also this week, effective Wednesday, June 4, Trump doubled tariffs on steel and aluminum from 25% to 50% Meanwhile, Trump's most sweeping tariffs face legal uncertainty after a federal appeals court allowed the tariffs to temporarily stay in effect, a day after the US Court of International Trade blocked their implementation, deeming the method used to enact them "unlawful." Here are the latest updates as the policy reverberates around the world. A major US auto parts group warned on Wednesday that China's new export rules on rare earths could soon cause serious problems for car production. These rare earth materials are used in cars and cameras, and China controls over 90% of the world's supply. This follows news that China is using a tracking system to monitor and control who is buying and selling rare earths, Car giants like GM (GM), Ford (F), and Toyota (TM) are already feeling the pressure. Ford has paused production of its Explorer SUV because of rare earth shortages. Foreign car companies are also feeling the heat. Suzuki Motor's suspended production of one of its vehicles due to rare earth restrictions, and German carmaker Mercedes-Benz ( MBGAF) is looking into building rare earth stockpiles with one of its key suppliers. In a statement to Reuters, MEMA, the Vehicle Suppliers Association, said: "The situation remains unresolved and the level of concern remains very high. It added: "Immediate and decisive action is needed to prevent widespread disruption and economic fallout across the vehicle supplier sector." It was also reported on Thursday that Japan is planning to propose strengthening cooperation with the US on rare earth supply chains in upcoming tariff talks with the US, due to recent export restrictions by China. The US and Japan are not the only two nations affected by the rare earths restrictions. Europe has also sounded the alarm, with EU businesses lobbying Beijing to set up a fast-track system for approval of rare earth export licences for "reliable" companies. China's rare earth curbs are seen as part of the wider trade tensions with the US as the two nations seek to reach a trade deal and avoid tariffs. President Trump confirmed his call with Chinese leader Xi Jinping on Truth Social, saying the call lasted one and half hours and "resulted in a very positive conclusion for both Countries." "I just concluded a very good phone call with President Xi, of China, discussing some of the intricacies of our recently made, and agreed to, Trade Deal," President Trump said. Trump added that the call focused on trade, including rare earth minerals, and that the two leaders did not discuss the Russia-Ukraine war or Iran. Notably, Trump outlined that he and Xi agreed on next steps for trade talks, which will take place "shortly." 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President Trump's tariffs on trading partners have deeply impacted global markets and led to recession fears in the US, which is the biggest market for P&G. A Reuters poll revealed that Trump's trade war has cost companies over $34B in lost sales and higher costs. My colleague Brian Sozzi highlights some of P&G's changes within his latest piece, stating that the consumer goods brand knows how to do a "few things very well." P&G was forced to raise prices on some products in April. Pricing and cost cuts were the main levers, CFO Andre Schulten said. On Thursday, Schulten and P&G's operations head Shailesh Jejurikar acknowledged that the geopolitical environment was "unpredictable" and that consumers were facing "greater uncertainty." Read more here. Instead of passing on tariff costs to consumers, tonic maker Fevertree Drinks (FQVTY) announced on Thursday it would equally split costs of the 10% tariff imposed on UK imports to the US with brewer Molson Coors (TAP). The British company, known for its premium cocktail mixers, counts the United States as its largest market, where it continues to deliver strong momentum bolstered by its partnership with the US beer maker Molson Coors. Read more here. Reuters reports: Read more here. British firms are brushing off President Trump's tariffs, according to a survey released on Thursday by the Bank of England. Reuters reports: Read more here. Reuters reports Read more here. Yahoo Finance's Ben Werschkul reports: Read more here. Apple (AAPL), which has become caught in the crossfire of President Trump's trade war several times this year, now faces delays to the launch of Apple Intelligence in China, the Financial Times reports. It's the latest instance in which the conflict between the US and China has spilled into areas other than tariffs, including aircraft bans, export controls, and student visas. From the Financial Times: Read more here (premium). 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They do not reflect the US-UK trade pact announced on May 8. President Trump's tariffs are leading many American's, especially those with deeper pockets to flock to dollar stores. Chains such as Dollar General and Dollar Tree, whose core customer base was once (and still is) those with less money, are now seeing a rise in wealthier customers visiting their stores, as Trump's tariffs darken US consumer sentiment. The FT reports: Read more here. Activity in the services sector has fallen into contraction for the first time in a year. The Institute for Supply Management's Services PMI registered a reading of 49.9 in May, below the 51.6 seen in April and lower than the increase to 52 economists had expected. Readings above 50 for this index indicate an expansion in activity, while readings below 50 indicate contraction. May's data marked just the fourth time the services sector has fallen into contraction in the past five years. New orders tumbled to a reading of 46.4 in May, below the 52.3 seen the month prior. Meanwhile, the prices paid index increased to 68.7, up from 65.1 in April. This marked the highest prices paid reading since November 2022, when the Consumer Price Index had shown inflation at 7.1%. Steve Miller, the chair of ISM's Services Business Survey, said in the release that "tariff impacts are likely elevating prices paid." "May's PMI level is not indicative of a severe contraction, but rather uncertainty that is being expressed broadly among ISM Services Business Survey panelists," Miller said. Yahoo Finance's Josh Schafer reports: Read more here. The Bank of Canada noted that it's seeing softness in the Canadian economy due to tariffs as it held interest rates steady on Wednesday. 'With uncertainty about US tariffs still high, the Canadian economy softer but not sharply weaker, and some unexpected firmness in recent inflation data, Governing Council decided to hold the policy rate as we gain more information on US trade policy and its impacts,' the Bank said in a statement. 'We will continue to assess the timing and strength of both the downward pressures on inflation from a weaker economy and the upward pressures on inflation from higher costs.' Governor Tiff Macklem also noted that while it's too soon to see tariff-related inflation broadly in consumer prices, the US-Canada trade conflict is "the biggest headwind facing the Canadian economy." Read live updates about the Bank of Canada's policy meeting here. A major US auto parts group warned on Wednesday that China's new export rules on rare earths could soon cause serious problems for car production. These rare earth materials are used in cars and cameras, and China controls over 90% of the world's supply. This follows news that China is using a tracking system to monitor and control who is buying and selling rare earths, Car giants like GM (GM), Ford (F), and Toyota (TM) are already feeling the pressure. Ford has paused production of its Explorer SUV because of rare earth shortages. Foreign car companies are also feeling the heat. Suzuki Motor's suspended production of one of its vehicles due to rare earth restrictions, and German carmaker Mercedes-Benz ( MBGAF) is looking into building rare earth stockpiles with one of its key suppliers. In a statement to Reuters, MEMA, the Vehicle Suppliers Association, said: "The situation remains unresolved and the level of concern remains very high. It added: "Immediate and decisive action is needed to prevent widespread disruption and economic fallout across the vehicle supplier sector." It was also reported on Thursday that Japan is planning to propose strengthening cooperation with the US on rare earth supply chains in upcoming tariff talks with the US, due to recent export restrictions by China. The US and Japan are not the only two nations affected by the rare earths restrictions. Europe has also sounded the alarm, with EU businesses lobbying Beijing to set up a fast-track system for approval of rare earth export licences for "reliable" companies. China's rare earth curbs are seen as part of the wider trade tensions with the US as the two nations seek to reach a trade deal and avoid tariffs. President Trump confirmed his call with Chinese leader Xi Jinping on Truth Social, saying the call lasted one and half hours and "resulted in a very positive conclusion for both Countries." "I just concluded a very good phone call with President Xi, of China, discussing some of the intricacies of our recently made, and agreed to, Trade Deal," President Trump said. Trump added that the call focused on trade, including rare earth minerals, and that the two leaders did not discuss the Russia-Ukraine war or Iran. Notably, Trump outlined that he and Xi agreed on next steps for trade talks, which will take place "shortly." Trump is sending Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and US Trade Representative Jamieson Greer to meet with Chinese officials. Trump also said he and the first lady had been invited to visit China and that he extended the same invitation to President Xi. Read more here. The US trade deficit shrank in April as imports fell sharply, mainly due to President Trump's tariffs and companies who had previously raced to beat high import costs, no longer rushing in goods ahead of new levies. Reuters reports: Read more here. Chinese state media reported Thursday morning that President Trump and Chinese President Xi Jinping had a phone call at Trump's request. Anticipation had been building as to when the two leaders would speak, as trade tensions between the US and China reignited after Trump and Chinese officials each stated the other had broken their informal Geneva agreement. Trump had publicly pushed for a phone call, which press secretary Karoline Leavitt hinted would come this week. The call appears to mark the first talk between the two leaders during Trump's second term in office. Indian and US officials are holding high-level talks this week in New Delhi to hammer out a finalized trade deal that could be announced this month, two government sources told Reuters. Reuters reports: Read more here. The tit-for-tat game between the US and China continues. A Bloomberg report on Thursday said that the Trump administration plans to broaden restrictions on China's tech sector with new regulations to include subsidiaries of companies under US curbs. This follows China's curbs on rare earths which have led to the US, the EU, Japan and global car companies sounding the alarm on supply chain issues. The Geneva tariff talks between the US and China were meant to help prevent trade tensions between the two nations and put a stop to escalating tariffs. However, it seems both sides are unwilling to back down. Bloomberg News reports: Read more here. US business optimism has fallen sharply, reflecting a trend seen in the first quarter of the year and a reversal from the buoyant mood after President Trump was elected. Bloomberg News reports: Read more here. The world's largest consumer goods company, Procter & Gamble (PG), said on Thursday it will cut 7,000 jobs, approximately 6% of its total workforce, over the next two years as part of a new restructuring plan to combat falling consumer demand and higher costs due to tariffs. P&G said it also plans to exit some product categories and brands in certain markets. P&G, which makes popular brands such as Pampers and Tide detergent, said the restructuring plan comes when consumer spending is pressured. Like P&G, other consumer companies are also facing a drop in demand, such as Unilever. President Trump's tariffs on trading partners have deeply impacted global markets and led to recession fears in the US, which is the biggest market for P&G. A Reuters poll revealed that Trump's trade war has cost companies over $34B in lost sales and higher costs. My colleague Brian Sozzi highlights some of P&G's changes within his latest piece, stating that the consumer goods brand knows how to do a "few things very well." P&G was forced to raise prices on some products in April. Pricing and cost cuts were the main levers, CFO Andre Schulten said. On Thursday, Schulten and P&G's operations head Shailesh Jejurikar acknowledged that the geopolitical environment was "unpredictable" and that consumers were facing "greater uncertainty." Read more here. Instead of passing on tariff costs to consumers, tonic maker Fevertree Drinks (FQVTY) announced on Thursday it would equally split costs of the 10% tariff imposed on UK imports to the US with brewer Molson Coors (TAP). The British company, known for its premium cocktail mixers, counts the United States as its largest market, where it continues to deliver strong momentum bolstered by its partnership with the US beer maker Molson Coors. Read more here. Reuters reports: Read more here. British firms are brushing off President Trump's tariffs, according to a survey released on Thursday by the Bank of England. Reuters reports: Read more here. Reuters reports Read more here. Yahoo Finance's Ben Werschkul reports: Read more here. Apple (AAPL), which has become caught in the crossfire of President Trump's trade war several times this year, now faces delays to the launch of Apple Intelligence in China, the Financial Times reports. It's the latest instance in which the conflict between the US and China has spilled into areas other than tariffs, including aircraft bans, export controls, and student visas. From the Financial Times: Read more here (premium). Prime Minister Mark Carney said Canada will take "some time" to assemble a response to the doubled steel and aluminum tariffs President Trump imposed on Tuesday and that the US and Canada are currently involved in "intensive" trade talks. "We will take some time — not much, some time — because we are in intensive discussions right now with the Americans on our trading relationship," Carney said, as reported by the Canadian Press. Carney also stated that the 50% steel and aluminum tariffs are "unlawful and unjustified," and he predicted they will harm American workers as well as Canada. He noted that Canada is considering its response to Trump's escalation. Already the country has implemented countermeasures on $90 billion worth of US goods. Read more here. In a new letter approximating the budgetary impacts of President Trump's tariffs, the nonpartisan Congressional Budget Office (CBO) stated that tariffs would reduce deficits but reduce the US economy and raise inflation. CBO assessed that the collections from tariffs implemented between Jan. 6 and May 13 would reduce primary deficits by a net $2.8 trillion over the next decade when accounting for reduced outlays of interest payments as well as changes in the size of the economy. The preliminary analysis stated that the effects of retaliatory tariffs, plus reductions in investment and productivity due to tariffs, are expected to weigh on economic growth. The budget office pegged a $300 billion increase in the deficit to these economic changes, partially offsetting the $3 trillion deficit reduction from tariff revenue. CBO also estimated that inflation will increase by 0.4 percentage points on average in 2025 and 2026, thereby "reducing the purchasing power of households and businesses." The estimates reflect the duties imposed as of May 13, including 10% broad-based tariffs, 25% auto tariffs, and 25% steel and aluminum tariffs (the last of which doubled as of June 3). They do not reflect the US-UK trade pact announced on May 8. President Trump's tariffs are leading many American's, especially those with deeper pockets to flock to dollar stores. Chains such as Dollar General and Dollar Tree, whose core customer base was once (and still is) those with less money, are now seeing a rise in wealthier customers visiting their stores, as Trump's tariffs darken US consumer sentiment. The FT reports: Read more here. Activity in the services sector has fallen into contraction for the first time in a year. The Institute for Supply Management's Services PMI registered a reading of 49.9 in May, below the 51.6 seen in April and lower than the increase to 52 economists had expected. Readings above 50 for this index indicate an expansion in activity, while readings below 50 indicate contraction. May's data marked just the fourth time the services sector has fallen into contraction in the past five years. New orders tumbled to a reading of 46.4 in May, below the 52.3 seen the month prior. Meanwhile, the prices paid index increased to 68.7, up from 65.1 in April. This marked the highest prices paid reading since November 2022, when the Consumer Price Index had shown inflation at 7.1%. Steve Miller, the chair of ISM's Services Business Survey, said in the release that "tariff impacts are likely elevating prices paid." "May's PMI level is not indicative of a severe contraction, but rather uncertainty that is being expressed broadly among ISM Services Business Survey panelists," Miller said. Yahoo Finance's Josh Schafer reports: Read more here. The Bank of Canada noted that it's seeing softness in the Canadian economy due to tariffs as it held interest rates steady on Wednesday. 'With uncertainty about US tariffs still high, the Canadian economy softer but not sharply weaker, and some unexpected firmness in recent inflation data, Governing Council decided to hold the policy rate as we gain more information on US trade policy and its impacts,' the Bank said in a statement. 'We will continue to assess the timing and strength of both the downward pressures on inflation from a weaker economy and the upward pressures on inflation from higher costs.' Governor Tiff Macklem also noted that while it's too soon to see tariff-related inflation broadly in consumer prices, the US-Canada trade conflict is "the biggest headwind facing the Canadian economy." Read live updates about the Bank of Canada's policy meeting here.

How to Turn Tariff Turmoil Into Boosted Sales — and Build Trust in the Process
How to Turn Tariff Turmoil Into Boosted Sales — and Build Trust in the Process

Entrepreneur

time2 hours ago

  • Entrepreneur

How to Turn Tariff Turmoil Into Boosted Sales — and Build Trust in the Process

When unexpected policy changes like tariffs hit, smart marketers don't panic — they pivot. Here's how we turned headlines into high-converting, urgency-driven campaigns that boosted sales and built trust. Opinions expressed by Entrepreneur contributors are their own. As chief marketing officer of the Tim Moran Auto Group, which runs Ford, Chevrolet and Hyundai dealerships, I've discovered the hard way that the best marketing campaigns don't always originate in the boardroom, but in the news cycle. Recently, news of fresh 25% tariffs against imported vehicles and automotive parts lit up the headlines and sent shock and confusion throughout the business community. Decisions like these can ripple through global supply chains, dealer inventories and customer bank accounts. But for companies that move quickly, changes in policy can also turn into moments of connection, urgency and growth. In our situation, consumer behavior was directly affected by the announcement. The day after the news became public, we saw traffic to our dealerships surge. Phones rang nonstop. Customers were suddenly jolted into an action that they had deferred for weeks." The message was obvious: urgency had washed into the market, and we had to act. Related: How Trump's Tariffs Are Reshaping Startups and Venture Capital What tariffs on cars would mean for the auto industry Tariffs, in essence, increase the cost of importing vehicles and parts. Domestic production has cushioned some of the blow, though a lot of vehicles continue to depend on parts or manufacturing procedures that come from abroad. For dealers, that could mean higher wholesale prices, tightened inventory and some models cutting into consumers' budgets, making cars less affordable. But here's the catch: Those increases won't occur overnight. There's a window — some days, some weeks — where it's unaffected, whatever the current inventory happens to be. And there is a huge marketing opportunity in that window. We saw it firsthand. Staring down tariffs, we initiated campaigns encouraging customers to "lock in current pricing before prices went up." Our messaging was all about transparency and value: "These vehicles, they're on the lot now at today's prices. They will probably cost more in the months ahead. Act now." We were not fearmongering — we were providing our customers with a heads-up and helping them to make informed decisions. Three brands, one clear message While each brand we represent — Ford, Chevrolet and Hyundai — brings its own strategy to the table, they're all preparing for the same reality: potential price increases driven by incoming tariffs that could impact parts, manufacturing and ultimately, sticker prices. That's why our group's message is simple and urgent: Get in now, while current on-lot inventory is still protected from these changes. Once that inventory is gone, replacements could cost thousands more — and no one can say for certain how steep those increases might be. Ford has leaned in with one of the strongest consumer incentives we've seen in years: employee pricing for everyone through July. That alone creates a major opportunity for savings before any tariff-related effects are felt. We've emphasized that this is a rare moment — with deep discounts available now, and a finite window before future inventory may carry higher costs due to global sourcing. Chevrolet and Hyundai, meanwhile, are both offering aggressive financing programs across popular models. These offers give customers a way to lock in low rates on current inventory before any upstream cost increases work their way into pricing. Our messaging has focused on clarity: All three brands will likely feel some level of tariff impact, especially when it comes to parts and production costs. So the time to act — to save and secure the best value — is before those effects ripple through the supply chain. Related: Historic Perspectives on Tariff Policies and Modern Impacts Marketing in uncertain times When you're in the middle of a fast-moving story like this one, clarity and nimbleness are essential. We leveraged various platforms — email, paid search, social media and even radio — to communicate a consistent message: Tick-tock, time's a-wasting. Customers seemed to appreciate the forthrightness. We weren't pushing products to meet targets; we gave them the opportunity to front-run the system before prices moved. We've had success with strategies such as: Time-locked events : "Tariff Countdown Sales" and "Beat the Price Hike" weekends built urgency and provided a clear rallying point for our teams. : "Tariff Countdown Sales" and "Beat the Price Hike" weekends built urgency and provided a clear rallying point for our teams. Incentive layering : Adding the tariff message to existing rebates or financing programs made the deals seem even more attractive. : Adding the tariff message to existing rebates or financing programs made the deals seem even more attractive. Concise deadlines: Whether it was a deadline for a tariff or the close of a promotion, we were always crystal clear when customers would no longer be able to take advantage and why they must act now. And, perhaps most important, we taught our sales teams to have conversations, not just close sales. We armed them with talking points about how tariffs might affect pricing down the line and how current offers could help customers get ahead of those price increases. This helped build trust and establish our team as trusted advisors, not mere salespeople. Related: 5 Startup Marketing Moves That Work Even in Uncertain Times Sage advice for entrepreneurs of every variety The auto industry may feel the impact of tariffs most acutely, but the larger strategy we used can work for any business. Here's some advice for entrepreneurs who want to capitalize on external events as marketing fodder: Stay plugged into the news . Having ripplecalling here means that, say, if there are legislative changes, economic changes or changes around the world, that affect your industry, you can end up seeing ripple effects through it. The quicker you can spot those changes, the quicker you can craft the judicious value-based message. . Having ripplecalling here means that, say, if there are legislative changes, economic changes or changes around the world, that affect your industry, you can end up seeing ripple effects through it. The quicker you can spot those changes, the quicker you can craft the judicious value-based message. Create urgency with truth . Here are the only two things that motivate people: scarcity and deadlines — but only when they're real. Don't invent panic. Rather, describe to your customers how an event (such as a tariff or new regulation) will impact your prices, availability or service offerings — and be upfront while you do so. . Here are the only two things that motivate people: scarcity and deadlines — but only when they're real. Don't invent panic. Rather, describe to your customers how an event (such as a tariff or new regulation) will impact your prices, availability or service offerings — and be upfront while you do so. Frame the case in terms of what's good for the customer . Instead of "We need to move inventory," it's "You can save money by buying before X happens." Articulate the benefit and put your customer first. . Instead of "We need to move inventory," it's "You can save money by buying before X happens." Articulate the benefit and put your customer first. Spend time building campaigns and testing everything . Some of our messaging was about "tariff alerts," while other sessions delved into more traditional, seasonal language. Through A/B testing, we learned what angle is most relatable to various segments, and we adapted accordingly. . Some of our messaging was about "tariff alerts," while other sessions delved into more traditional, seasonal language. Through A/B testing, we learned what angle is most relatable to various segments, and we adapted accordingly. Lead with value, not fear. But it doesn't have to all be bad. Emphasize what your customers get by acting now, not just what they lose by waiting. In a constantly changing news world, agility is one of the most powerful weapons in a marketer's arsenal. The tariffs are only one example, but the principles we used work whether you are selling cars, real estate, software or services. When the winds of change from the outside are blowing into your industry, do not turn back. Step up, speak clearly and turn that moment into momentum. We don't control the news. But we do have control over how we react to it — and that's where true opportunity resides.

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