Detroit Three automakers raise concerns about Japan trade deal
Matt Blunt, who heads the American Automotive Policy Council that represents the Detroit Three automakers, said they were still reviewing the agreement but "any deal that charges a lower tariff for Japanese imports with virtually no U.S. content than the tariff imposed on North American built vehicles with high U.S. content is a bad deal for U.S. industry and U.S. auto workers."
Trump has threatened to hike tariffs on Mexico to 30% and Canada to 35% on August 1.
White House spokesman Kush Desai defended the deal, calling it "a historic win for American automakers by putting an end to Japan's unfair auto trade barriers for American-made cars."
GM said Tuesday its second-quarter earnings took a $1.1-billion hit from tariffs and expects the impact to worsen in the third quarter.
Stellantis said Monday it expects more impact from U.S. tariffs on vehicles and auto part imports in the second half of 2025, reporting Trump's tariffs had cost it 300 million euros ($352 million) so far as the company reduced vehicle shipments and cut some production to adjust manufacturing levels.
In May, AAPC criticized Trump's announced trade deal with Britain, saying it would harm the U.S. auto sector.
British carmakers will be given a quota of 100,000 cars a year that can be sent to the United States at a 10% tariff rate, almost the total Britain exported last year.
"This hurts American automakers, suppliers, and auto workers," AAPC said.
Trump in April softened the blow of his auto tariffs by easing the impact of duties on parts and materials, but left in place 25% tariffs on imported vehicles.
He also extended a duty-free exemption for North American parts that comply with the U.S.-Mexico-Canada trade agreement rules of origin.
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San Francisco Chronicle
4 minutes ago
- San Francisco Chronicle
Bolivia heads to the polls as its right-wing opposition eyes first victory in decades
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With the nation's worst economic crisis in four decades leaving Bolivians waiting for hours in fuel lines, struggling to find subsidized bread and squeezed by double-digit inflation, the opposition candidates are billing the race as a chance to alter the country's destiny. 'I have rarely, if ever, seen a situational tinderbox with as many sparks ready to ignite,' Daniel Lansberg-Rodriguez, founding partner of Aurora Macro Strategies, a New York-based advisory firm, writes in a memo. Breaking the MAS party's monopoly on political power, he adds, pushes 'the country into uncharted political waters amid rising polarization, severe economic fragility and a widening rural–urban divide.' Bolivia could follow rightward trend The outcome will determine whether Bolivia — a nation of about 12 million people with the largest lithium reserves on Earth and crucial deposits of rare earth minerals — follows a growing trend in Latin America, where right-wing leaders like Argentina's libertarian Javier Milei, Ecuador's strongman Daniel Noboa and El Salvador's conservative populist Nayib Bukele have surged in popularity. A right-wing government in Bolivia could trigger a major geopolitical realignment for a country now allied with Venezuela's socialist-inspired government and world powers such as China, Russia and Iran. Conservative candidates vow to restore US relations Doria Medina and Quiroga have praised the Trump administration and vowed to restore ties with the United States — ruptured in 2008 when charismatic, long-serving former President Evo Morales expelled the American ambassador. The right-wing front-runners also have expressed interest in doing business with Israel, which has no diplomatic relations with Bolivia, and called for foreign private companies to invest in the country and develop its rich natural resources. After storming to office in 2006 at the start of the commodities boom, Morales, Bolivia's first Indigenous president, nationalized the nation's oil and gas industry, using the lush profits to reduce poverty, expand infrastructure and improve the lives of the rural poor. After three consecutive presidential terms, as well as a contentious bid for an unprecedented fourth in 2019 that set off popular unrest and led to his ouster, Morales has been barred from this race by Bolivia's constitutional court. His ally-turned-rival, President Luis Arce, withdrew his candidacy for the MAS on account of his plummeting popularity and nominated his senior minister, Eduardo del Castillo. As the party splintered, Andrónico Rodríguez, the 36-year-old president of the senate who hails from the same union of coca farmers as Morales, launched his bid. Ex-president Morales urges supports to deface ballots Rather than back the candidate widely considered his heir, Morales, holed up in his tropical stronghold and evading an arrest warrant on charges related to his relationship with a 15-year-old girl, has urged his supporters to deface their ballots or leave them blank. Voting is mandatory in Bolivia, where some 7.9 million Bolivians are eligible to vote. Doria Medina and Quiroga, familiar faces in Bolivian politics who both served in past neoliberal governments and have run for president three times before, have struggled to stir up interest as voter angst runs high. 'There's enthusiasm for change but no enthusiasm for the candidates,' said Eddy Abasto, 44, a Tupperware vendor in Bolivia's capital of La Paz torn between voting for Doria Medina and Quiroga. 'It's always the same, those in power live happily spending the country's money, and we suffer.' Conservative candidates say austerity needed Doria Medina and Quiroga have warned of the need for a painful fiscal adjustment, including the elimination of Bolivia's generous food and fuel subsidies, to save the nation from insolvency. Some analysts caution this risks sparking social unrest. 'A victory for either right-wing candidate could have grave repercussions for Bolivia's Indigenous and impoverished communities,' said Kathryn Ledebur, director of the Andean Information Network, a Bolivian research group. 'Both candidates could bolster security forces and right-wing para-state groups, paving the way for violent crackdowns on protests expected to erupt over the foreign exploitation of lithium and drastic austerity measures.' All 130 seats in Bolivia's Chamber of Deputies, the lower house of Parliament, are up for grabs, along with 36 in the Senate, the upper house. 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CNBC
2 hours ago
- CNBC
U.S. delegation's India visit reportedly called off as trade tensions simmer
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Yahoo
3 hours ago
- Yahoo
MMS Ventures Berhad's (KLSE:MMSV) Returns On Capital Not Reflecting Well On The Business
Explore MMS Ventures Berhad's Fair Values from the Community and select yours When we're researching a company, it's sometimes hard to find the warning signs, but there are some financial metrics that can help spot trouble early. A business that's potentially in decline often shows two trends, a return on capital employed (ROCE) that's declining, and a base of capital employed that's also declining. Trends like this ultimately mean the business is reducing its investments and also earning less on what it has invested. And from a first read, things don't look too good at MMS Ventures Berhad (KLSE:MMSV), so let's see why. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. What Is Return On Capital Employed (ROCE)? Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. To calculate this metric for MMS Ventures Berhad, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.0081 = RM539k ÷ (RM79m - RM12m) (Based on the trailing twelve months to June 2025). So, MMS Ventures Berhad has an ROCE of 0.8%. In absolute terms, that's a low return and it also under-performs the Machinery industry average of 7.7%. Check out our latest analysis for MMS Ventures Berhad While the past is not representative of the future, it can be helpful to know how a company has performed historically, which is why we have this chart above. If you're interested in investigating MMS Ventures Berhad's past further, check out this free graph covering MMS Ventures Berhad's past earnings, revenue and cash flow. The Trend Of ROCE We are a bit worried about the trend of returns on capital at MMS Ventures Berhad. Unfortunately the returns on capital have diminished from the 7.1% that they were earning five years ago. Meanwhile, capital employed in the business has stayed roughly the flat over the period. This combination can be indicative of a mature business that still has areas to deploy capital, but the returns received aren't as high due potentially to new competition or smaller margins. If these trends continue, we wouldn't expect MMS Ventures Berhad to turn into a multi-bagger. On a side note, MMS Ventures Berhad's current liabilities have increased over the last five years to 15% of total assets, effectively distorting the ROCE to some degree. Without this increase, it's likely that ROCE would be even lower than 0.8%. Keep an eye on this ratio, because the business could encounter some new risks if this metric gets too high. Our Take On MMS Ventures Berhad's ROCE In summary, it's unfortunate that MMS Ventures Berhad is generating lower returns from the same amount of capital. Investors haven't taken kindly to these developments, since the stock has declined 38% from where it was five years ago. That being the case, unless the underlying trends revert to a more positive trajectory, we'd consider looking elsewhere. One final note, you should learn about the 3 warning signs we've spotted with MMS Ventures Berhad (including 2 which can't be ignored) . While MMS Ventures Berhad isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
