Latest news with #-Mexico-CanadaAgreement
Yahoo
05-05-2025
- Business
- Yahoo
Northeastern governors look to sidestep Trump administration in Canadian trade war
Northeastern governors are looking to bolster their economic ties with America's northern neighbor and counteract the Trump administration's combative trade policies. In a letter sent Monday, governors from six states, including Massachusetts and New York, invited the premiers of six Canadian provinces for a meeting in Boston in the coming weeks. 'As Governors of New England, we want to keep open lines of communication and cooperation and identify avenues to overcome the hardship of these uninvited tariffs and help our economies endure,' the letter, led by Democratic Massachusetts Gov. Maura Healey, reads. 'As we continue to navigate this period of great uncertainty, we are committed to preserving cross border travel, encouraging tourism in our respective jurisdictions, and promoting each other's advantages and amenities.' President Donald Trump threatened 25 percent tariffs on a broad swath of imports from Canada, before pausing those in March, though the specter of implementation could be used as leverage in negotiations. Canada was spared from so-called reciprocal tariffs because of its inclusion in the revised North American trade deal, the U.S.-Mexico-Canada Agreement. Five of the six New England governors signed onto the letter, including Janet Mills of Maine, Ned Lamont of Connecticut, Dan McKee of Rhode Island and Phil Scott of Vermont, as did Gov. Kathy Hochul of New York. Scott is the lone Republican in the group. Republican New Hampshire Gov. Kelly Ayotte, the only New England governor not to sign on, was invited to join the letter and the meeting but declined, according to Healey's office. The six Canadian provinces sent the letter are Ontario, Québec, New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island. It's not the first time individual states have reached out to other countries in an effort to avoid getting caught in a standoff between the Trump administration and key trade partners. California Gov. Gavin Newsom made a direct appeal last month to other countries to spare his state from retaliation over Trump's trade policies. The letter comes as newly elected Canadian Prime Minister Mark Carney heads to the White House Tuesday to meet with Trump. The tariff whiplash and Trump's repeated talk of annexing Canada has strained the relationship between the neighboring countries. Tourism from Canada to the U.S. is already lagging, and businesses are bracing for an even steeper drop. And the threat of a trade war is cause for concern among New England leaders, whose states rely heavily on Canadian trade. 'President Trump's tariffs are the largest tax hike in American history — and they're devastating to the small businesses, family farms, and local manufacturers,' Hochul said in a statement. 'New York and Canada have a $50 billion trade relationship, and Trump's tariffs are hurting our businesses hard.'
Politico
05-05-2025
- Business
- Politico
Northeastern governors look to sidestep Trump administration in Canadian trade war
Northeastern governors are looking to bolster their economic ties with America's northern neighbor and counteract the Trump administration's combative trade policies. In a letter sent Monday, governors from six states, including Massachusetts and New York, invited the premiers of six Canadian provinces for a meeting in Boston in the coming weeks. 'As Governors of New England, we want to keep open lines of communication and cooperation and identify avenues to overcome the hardship of these uninvited tariffs and help our economies endure,' the letter, led by Democratic Massachusetts Gov. Maura Healey, reads. 'As we continue to navigate this period of great uncertainty, we are committed to preserving cross border travel, encouraging tourism in our respective jurisdictions, and promoting each other's advantages and amenities.' President Donald Trump threatened 25 percent tariffs on a broad swath of imports from Canada, before pausing those in March , though the specter of implementation could be used as leverage in negotiations. Canada was spared from so-called reciprocal tariffs because of its inclusion in the revised North American trade deal, the U.S.-Mexico-Canada Agreement. Five of the six New England governors signed onto the letter, including Janet Mills of Maine, Ned Lamont of Connecticut, Dan McKee of Rhode Island and Phil Scott of Vermont, as did Gov. Kathy Hochul of New York. Scott is the lone Republican in the group. Republican New Hampshire Gov. Kelly Ayotte, the only New England governor not to sign on, was invited to join the letter and the meeting but declined, according to Healey's office. The six Canadian provinces sent the letter are Ontario, Québec, New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island. It's not the first time individual states have reached out to other countries in an effort to avoid getting caught in a standoff between the Trump administration and key trade partners. California Gov. Gavin Newsom made a direct appeal last month to other countries to spare his state from retaliation over Trump's trade policies. The letter comes as newly elected Canadian Prime Minister Mark Carney heads to the White House Tuesday to meet with Trump. The tariff whiplash and Trump's repeated talk of annexing Canada has strained the relationship between the neighboring countries. Tourism from Canada to the U.S. is already lagging , and businesses are bracing for an even steeper drop . And the threat of a trade war is cause for concern among New England leaders, whose states rely heavily on Canadian trade. 'President Trump's tariffs are the largest tax hike in American history — and they're devastating to the small businesses, family farms, and local manufacturers,' Hochul said in a statement. 'New York and Canada have a $50 billion trade relationship, and Trump's tariffs are hurting our businesses hard.'
Yahoo
01-05-2025
- Business
- Yahoo
GE Healthcare slashes 2025 profit forecast on tariff impact
This story was originally published on MedTech Dive. To receive daily news and insights, subscribe to our free daily MedTech Dive newsletter. By the numbers Q1 sales: $4.78 billion 2.7% increase year over year Net income: $564 million Nearly 51% increase year over year GE Healthcare cut its 2025 adjusted earnings outlook to reflect an estimated 85-cent-per-share impact from tariffs, especially duties affecting trade with China, executives said on an earnings call Wednesday. CEO Peter Arduini said bilateral U.S. and China tariffs account for 75% of the total net impact. For the full year, GE Healthcare now expects adjusted earnings in a range of $3.90 to $4.10 per share, down from the prior estimate of $4.61 to $4.75. The revised outlook assumes that tariffs remain at the current elevated levels and that U.S. reciprocal tariffs on the rest of the world — announced April 2 — return to pre-pause rates on July 9. The forecast also assumes Mexico and Canada tariffs remain in place, with exemptions under the U.S.-Mexico-Canada Agreement continuing for all eligible imports. Executives detailed efforts that GE Healthcare is taking to mitigate its tariff exposure, including work on USMCA compliance and logistics routes. Without those actions, the gross impact of tariffs would be about $1.75 per share, Arduini said. CFO Jay Saccaro said the company is looking at tactics for further mitigating tariff impact, including more dual sourcing and making products where they are consumed. Tariffs aside, first-quarter revenue and profit growth exceeded GE Healthcare's expectations, according to Arduini, as strength in the U.S. market drove double-digit growth in orders. Customers are prioritizing investments in imaging products with a particular focus on cardiology and oncology, and the company gained share in multiple markets, the CEO added. Despite the tariff impact weighing on GE Healthcare's outlook, 'the company turned in a truly positive 1Q25 performance on multiple fronts,' including better-than-expected results in its China business, Stifel analyst Rick Wise wrote in a note to clients Wednesday. Saccaro characterized overall hospital capital demand as constructive, noting GE Healthcare has a record backlog that increased substantially year over year. 'A lot of [customer budgets] were set earlier in the year,' he said, 'and we haven't observed any significant cancellations or deferrals in response to the global trade environment.' Recommended Reading Trump's tariff effect has dominated medtech earnings calls Sign in to access your portfolio
Reuters
11-04-2025
- Business
- Reuters
Trump's tariff confusion could leave aircraft deliveries in limbo
MONTREAL/CHICAGO April 11 (Reuters) - Cars, consumer goods, and industrial equipment have been delayed at ports, stuck on rail cars, and languished in warehouses at times over the last few months due to the White House's on-again, off-again tariff policy. Planes and their engines are usually ordered by U.S. buyers years in advance, and tariff confusion risks delaying shipments of both, even if the industry has not been directly targeted for duties, sources told Reuters. The frequent changes and added costs are stressing a supply chain that has wrestled with shortages of parts and labor. Outside Montreal, workers at Airbus' ( opens new tab Canadian plant assembled a single-aisle A220 jet over the last several months, even as the shifting tariff policy made it unclear whether the plane would go to its intended customer, Delta Air Lines (DAL.N), opens new tab, with or without a 25% duty. The rapidly changing landscape means Delta might receive the 130-seat plane without tariffs, or could owe duties to the U.S. government for parts made outside the United States. The aircraft is expected to be delivered in June, according to aviation analytics firm Cirium. Delta and Airbus declined comment on whether the A220 jet would be subjected to the levy. Tariffs have rarely been an issue for aerospace. Aside from an 18-month transatlantic tariff war over Airbus and Boeing (BA.N), opens new tab subsidies in 2020 and 2021, the industry has operated under a 1979 treaty guaranteeing zero-duty trading that includes the U.S. and Canada, but not Mexico. But President Donald Trump 's frequent tariff changes during assembly of this A220 jet illustrate how his strategy adds risks for planemakers and airlines alike. In early February, as Airbus employees in Mirabel, Quebec, worked on the plane's interior near the start of the assembly line, a source said, Trump threatened a 25% tariff on goods imported from Canada and Mexico. The levy would have raised the cost for Delta substantially on a plane worth about $40.5 million, according to Cirium delivery data from 2024. SHIFTING TARIFF POLICY Just before that tariff was to go into effect, Trump delayed it for 30 days, and then said goods compliant with the Trump-negotiated U.S.-Mexico-Canada Agreement would be exempt from duties. Those requirements forced Canadian aerospace companies to scramble to sort out paperwork they had not previously needed. This particular plane, recently painted in Delta's colors, was believed to comply with the 2020 agreement, and hence exempt from tariffs, industry sources said. Canada's Bombardier ( opens new tab has said its jets are compliant, and they have been delivered to U.S. clients without duties, one of the sources told Reuters. But the confusion was so great that at a recent factory meeting, Airbus told workers the tariff situation was complex and constantly evolving, according to a source who attended. Tariffs could also lead to heated negotiations between manufacturers and airlines over who pays. Delta said on Wednesday it would defer deliveries instead of paying tariffs as it tries to control costs in the face of slowing travel demand. "The one thing that you need to know we're very clear on is that we will not be paying tariffs on any aircraft deliveries," CEO Ed Bastian told analysts. "We've been clear with Airbus on that, and we'll work through and see what happens." 'UNPRECEDENTED UNCERTAINTY' As of the end of 2024, Delta estimated it would receive 43 aircraft from Airbus. A number of those jets were expected to come from its production lines outside the U.S. Airbus' CEO Guillaume Faury warned in February the company could prioritize deliveries to non-U.S. customers if tariffs were to disrupt imports. After Trump announced a 90-day pause on many tariffs on Wednesday, Treasury Secretary Scott Bessent suggested Canada would face a 10% tariff along with other countries, before a White House official clarified there was no change. The tariff confusion has roiled the industry. Some shipments of RTX (RTX.N), opens new tab engines from one of its Canadian units to U.S. clients were temporarily delayed as the company procured paperwork to prove USMCA compliance, two senior industry executives said. RTX declined comment. Trump's policy has caused "unprecedented uncertainty" that has also stalled travel demand, Bastian said on Wednesday, warning the economy would lose steam until the tariff-induced uncertainty was resolved. "I hope our leaders in Washington are paying attention," he said.
Yahoo
07-04-2025
- Automotive
- Yahoo
Tariffs will lead to 2 million fewer auto sales in US this year, auto advisory firm forecasts
By Kalea Hall and Nora Eckert DETROIT (Reuters) - U.S. and Canada auto sales could decline by 1.8 million vehicles this year and be stagnant over the next decade if the global trade war escalates, a Detroit-area automotive advisory firm forecasts. If the current tariffs stay in place until 2035, sales of light-duty vehicles in the U.S. and Canada would be about 7 million units lower than the 24.6 million sales in a scenario with no trade conflicts and strong economic growth, Telemetry said on Monday in a forecast provided exclusively to Reuters. President Donald Trump's 25% automotive import tariffs went into effect April 3. Vehicles made in Mexico and Canada face the levy, but automakers compliant with the terms of the U.S.-Mexico-Canada Agreement can deduct the value of U.S. content. The Trump administration has also imposed reciprocal tariffs of varying rates on different countries, which were not applied to Canada and Mexico. The tariffs have pressured automakers to make production changes with General Motors (GM) increasing truck output at an Indiana plant and Stellantis, maker of Ram trucks and Jeeps, temporarily shutting down production at two plants in Mexico and in Canada, affecting five U.S. facilities that are connected to them. Automakers including Ford Motor (F) and Stellantis (STLA) upped their incentive offers to ease consumers' concerns about the duties adding to vehicle prices. Analysts have projected that sustained tariffs will increase prices by thousands of dollars, and automakers have warned the same. 'Vehicle affordability is already a major issue for consumers,' said Sam Abuelsamid, vice president of insights at Telemetry. On average, new vehicles cost nearly $50,000 and interest rates on vehicle loans have increased since the pandemic. 'With sales going down, you're going to have layoffs,' Abuelsamid said. 'And even to the degree that some production shifts to the U.S., it's not going to be enough to offset the lost employment from higher costs and lower sales.' Although the rate of EV sales growth has slowed in recent years, Telemetry expects battery electric vehicles to be the most common powertrain across the globe in a decade, with 40.5 million vehicles sold. The firm expects BEV volumes in Canada and the U.S. to reach 8.8 million units in a scenario with no trade conflicts and strong economic growth, especially as options such as extended range EVs become more prevalent. By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy Sign in to access your portfolio
