Global Markets, U.S. Futures Rise After Trump Tariffs Blocked by Court
Global stocks and U.S. stock-index futures rose early Thursday after the U.S. Court of International Trade on Wednesday struck down President Trump's global tariffs, ruling that they were illegally imposed under emergency laws.
The dollar, bitcoin and oil gained while bond yields rose and gold slipped on lower safe-haven demand. Also buoying chip stocks in particular, Nvidia's NVDA -0.51%decrease; red down pointing triangle earnings after the bell Wednesday beat expectations.
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Yahoo
14 minutes ago
- Yahoo
Carmakers Use Stealth Price Hikes to Cope With Trump's Tariffs
(Bloomberg) — Car buyers racing to get ahead of President Donald Trump's tariffs face an uncomfortable truth — the trade war is already boosting US auto prices, often in ways nearly invisible to consumers. Next Stop: Rancho Cucamonga! ICE Moves to DNA-Test Families Targeted for Deportation with New Contract Where Public Transit Systems Are Bouncing Back Around the World US Housing Agency Vulnerable to Fraud After DOGE Cuts, Documents Warn The Global Struggle to Build Safer Cars The sticker price on a particular make and model may not have changed, at least not yet. But automakers have been quietly cutting rebates and limiting cheap financing deals, adding hundreds of dollars to buyers' monthly payments even as the companies say they're holding the line on pricing. Several have boosted delivery charges — a fee everyone must pay when buying a new vehicle — by $40 to $400 dollars, according to automotive researcher Inc. Some dealers, meanwhile, have decided to charge more for the cars already on their lots, knowing it will cost more to replace them. These stealth increases could help automakers cope with Trump's 25% levies on imported vehicles without risking his wrath, particularly once cars that landed in American ports after the tariffs were imposed finally start reaching showrooms this month. They'd all like to avoid the social-media fury he unleashed on Walmart Inc. (WMT) after the retail giant said the trade war had forced it to raise prices. But the auto industry's subtle price hikes are already having an effect. The average sale price for a new car jumped 2.5% in April, the steepest monthly increase in five years, according to the Kelley Blue Book car buying guide. The average reached $48,699, almost a record. Incentives, which once knocked 10% off the price, fell to 6.7%. Zero-percent financing deals — a key come-on in this age of high interest rates — dropped in April to their lowest rate since 2019, according to researcher Cox Automotive. And at some point, car buyers may balk. 'On the consumer side, they're seeing several thousand dollars of actual-experience price increase, whereas the factory is saying, 'No man, we didn't raise prices at all,'' said Morris Smith III, a Ford (F) dealer in Kansas. 'Stealth is a good word for it.' While the steps have helped car companies avoid outright price hikes until now, those are coming. Ford Motor Co. told dealers it will raise sticker prices as much as $2,000 on three models it builds in Mexico — the Maverick pickup, the Bronco Sport and the electric Mustang Mach-E. Japan's Subaru Corp. (FUJHY) is boosting prices $1,000 to $2,000 to help offset tariff costs, according to people familiar with the matter. Hyundai Motor Co. (HYMLF) is considering a 1% increase to the suggested retail price of every model in its lineup, a hike of at least several hundred dollars, Bloomberg reported last week. The Korean company also is likely to jack up shipping charges and fees for options such as floor mats and roof rails, which could turn off some inflation-weary consumers. Other automakers are hiking prices on their new 2026 models coming this summer and fall, but attributing the increases to the model-year changeover rather than tariffs. 'With a new product, having a higher price is not 'raising price' in the game of semantics,' said John Murphy, an analyst with Bank of America Corp. (BAC), at an event in Detroit Wednesday. 'So they don't really enrage certain folks that might come down on them for raising price.' All of these changes — the sticker price increases, reduced incentives and higher fees — will become more visible to car shoppers in the coming weeks. Since the 25% levies went into effect on April 3, dealers have been selling from a shrinking stockpile of pre-tariff cars. (There's an exemption for cars that comply with the terms of the US, Mexico and Canada free trade agreement, which only face an import tax on their non-American content.) That process is nearly done, and by late June, dealers will face the new reality of lots filled with cars that cost more to bring into the country. 'There's nothing they can do to prevent this from having an impact,' said Sean Tucker, editor of Kelley Blue Book. 'There's not a single cliff, but the date they run out of those pre-tariff cars, that's when you're going to see the most dramatic change.' Sales may suffer as a result. A recent survey from found that 65% of new car buyers would walk away if monthly payments rose just 5% in a market where car prices are already near historic highs. An Edmunds survey released Thursday found three-quarters of car buyers said tariffs would be a factor in their purchasing decisions. Shoppers are already not getting the deals that were commonplace just months ago. Take the Ford F-150 pickup, America's top-selling vehicle. Earlier this year, an F-150 could be had with a 1.9% interest rate on a 6-year loan, Smith, the Kansas dealer, said. Then, Ford only offered that rate for certain, higher-priced trim levels of the truck. Now, 1.9% financing is offered only on three-year loans, which are rare.'The dealers I'm talking to have every expectation that in the next 90 days to six months, there will be pretty significant price increases across the board,' Smith said, 'assuming something doesn't happen with the tariffs.' Some dealers are preparing for that day of reckoning by making as much money off their pre-tariff inventory as they can, charging over the sticker price. 'Dealers set final prices, and they're dealing with the knowledge that for every car they sell, it's going to cost them more to replace it than it used to,' Tucker said. Automakers might not just raise prices on the cars they import. They may choose to increase the costs of their more expensive, US-made models so the full weight of the tariffs doesn't fall on some of the cheaper vehicles they make overseas. General Motors Co. (GM), for example, imports more than 400,000 cars each year from its factories in South Korea, including the $20,500 Chevrolet Trax. 'GM doesn't necessarily have to raise the price of the Chevy Trax by 25% in order to pay a 25% tariff on the Chevy Trax, because those buyers are the most price-sensitive,' Tucker said. 'So maybe instead, you bump up the price of the Silverado pickup in order to pay the tariff on the Trax. But GM isn't going to put that on a window sticker.' Automakers may also drop the most affordable trims of their vehicles. Stellantis NV (STLA (STLA) decided to pause making the entry-level version of its electric muscle car, the Charger Daytona R/T, because of tariff risks, the company confirmed in May. The R/T, built at an assembly plant in Windsor, Canada, currently starts at $59,595, while the more powerful Scat Pack trim starts at $73,190. Cox forecasts tariffs could raise the price on imported cars by 10% to 15%, further exacerbating an affordability crisis. But those increases aren't likely to come in big chunks, instead phasing in slowly and quietly so as not to scare off customers, said Erin Keating, Cox's senior director of economics and industry insights. Still, some potential buyers will walk away. Domestic sales could fall from 16 million in 2024 to 15.6 million this year, according to Cox. The outlook from consumer analysis company J.D. Power is even bleaker, with tariffs predicted to cut US auto sales by about 1.1 million vehicles annually, or roughly 8%. Automakers are scaling back production in anticipation. More than a half-million fewer cars will be built in North America this year than in 2024, according to researcher AutoForecast Solutions. 'By enacting tariffs on Canadian and Mexican parts and vehicles, it slows the whole workings of this North American machine making vehicles,' said Sam Fiorani, AutoForecast's vice president of global vehicle forecasting. 'The vehicles that are being built will cost more, raising the price of vehicles and lowering the demand for them. It's all interconnected.' —With assistance from Chester Dawson. Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Is Elon Musk's Political Capital Spent? Trump Considers Deporting Migrants to Rwanda After the UK Decides Not To ©2025 Bloomberg L.P. 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Bloomberg
16 minutes ago
- Bloomberg
Trump, Musk's Public Feud
The Pulse with Francine Lacqua Elon Musk signaled he would move to cool tensions with US President Donald Trump, after differences between the two exploded Thursday into an all-out public feud. Earlier in the day, Musk called for Trump's impeachment and insinuated he was withholding the release of files related to disgraced New York financier Jeffrey Epstein because of his own presence in them. Trump, in turn, proposed cutting off the billionaire's government contracts, following his onetime adviser's repeated exhortations for Republicans to vote against the president's signature tax legislation. Musk's olive branch came after Tesla Inc. shares tanked 14% and his personal wealth dropped by $34 billion. Today's guests: Emmanuel Cau, Barclays European Equity Strategy Head, Gregory Peters, PGIM Fixed Income Co-CIO, Maria Demertzis, The Conference Board Economy, Strategy & Finance Center Europe Lead. (Source: Bloomberg)
Travel Weekly
16 minutes ago
- Travel Weekly
The impact of Trump's tariffs on aviation is up for debate
NEW DELHI, India -- Aviation leaders at IATA's Annual General Meeting presented a divided front on the potential impact of President Trump's tariffs on the aviation sector. While some members warn that the tariffs could disrupt global supply chains and increase operational costs, others believe the industry can adapt without significant damage. IATA director general Willie Walsh said that if tariffs stay relatively modest, like the 10% baseline tariffs the U.S. currently has in effect for imports, their impact on consumer demand will be minimal. In some previous periods of high tariffs, Walsh said, the airline industry grew significantly. "Industries adapt. People adapt," he said. His confidence wasn't fully shared by the trade group's chief economist, Marie Owens Thomsen, who said that increases in tariffs and trade barriers will have a long-term downward impact on global flight demand. U.S. tariffs are currently at their highest level since the 1930s. "Tariffs are a tax, and anything that you tax will shrink," she said. Cirium analysts also sounded an alarm in a report produced ahead of the IATA meeting. "While it is too early to judge any likely impact of tariffs on the commercial aviation sector, they pose a risk to demand and to supply," the analysis reads. The most immediate impact could be on aircraft production costs, since suppliers Airbus, Boeing and others source parts for any particular plane from all over the world. "The reality is that the supply chain for aircraft production is extremely complicated, globally distributed and is even more directly impacted by tariffs, or concerns about them, than air travel demand," said Vik Krishnan, an aviation-focused partner for the consulting firm McKinsey. The sheer volume of parts on commercial aircraft are a key complication. For example, an Airbus A320 has 340,000 parts. And components for a single plane, said Krishnan, are assembled in a number of countries. Today's uncertainty around tariffs, he said, has a real impact on aircraft manufacturers. Walsh called for aircraft and engine parts to be exempted from all global tariffs. He also said airlines would resist cost increases for aircraft unless suppliers can demonstrate justification. "We don't want to see any of the manufacturers, any of the suppliers, using tariffs as an excuse or an opportunity to increase their prices to the industry," he said. Airlines still on track for a good year Despite those concerns, IATA's latest forecast indicates that global financial uncertainty will have only a mild impact on 2025 airline performance, mostly due to lower fuel costs. The trade group projects global airline revenues of $979 billion this year, down from its forecast in December that the industry would realize revenue of $1 trillion for the first time. But revenue reductions will be almost entirely offset by lower-than-projected costs for fuel. IATA now expects a global fuel bill of $236 billion for airlines in 2025, with average jet fuel prices of $86 per barrel. That compares to an average per-barrel cost of $99 in 2024 and industrywide fuel costs of $261 billion. Overall, IATA now projects 2025 industry net profits of $36 billion, only slightly down from its December projection of $36.6 billion. IATA's projection assumes global GDP will grow 2.5% in 2025, down from 3.3% growth last year. IATA projects U.S. GDP to grow 1.5%, down from 2.8% in 2024. IATA does not expect a global recession, in part because of the positive macro impact of cheap fuel and because the Trump tariffs only impact the manufacturing sector and not the servicing sector, which represents more than half of the global economy. Even in the transatlantic market, where flight data company Cirium showed that U.S. arrivals dropped by more than 10% year over year in the first quarter, Walsh remains modestly bullish. Forward bookings look fine in the months to come across the Atlantic, he said, and two-way traffic outperformed 2024 by 2.4% in April. "I suspect when we do look back on 2025," Walsh said, "transatlantic traffic will be slightly better than 2024."
