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Politico
21-07-2025
- Business
- Politico
Trump's trade deals leave industry in ‘paralysis'
Presented by Autos Drive America With help from Doug Palmer and Grace Yarrow QUICK FIX — As President Donald Trump rushes to finalize new trade deals before the end of the month, American companies operating abroad are still waiting for clarity on existing agreements. — A top South African official tells Morning Trade the country will not accept a trade deal with the United States that eliminates all tariffs on American goods. — Republican lawmakers from farm states are beginning to lose patience with Trump's tariff strategy as harvest season approaches. It's Monday, July 21. Welcome to Morning Trade! Got news tips? Suggestions? Want to grab a coffee? Hit us up at: ahawkins@ ddesrochers@ and dpalmer@ Follow us on X: @_AriHawkins, @drdesrochers and @tradereporter. Want to receive this newsletter every weekday? Subscribe to POLITICO Pro. You'll also receive daily policy news and other intelligence you need to act on the day's biggest stories. Driving the day WHERE ARE THE PAPERS? Trump is under growing pressure from the business community to clarify the terms of his new trade agreements, amid warnings that the uncertainty is rattling investor confidence and leaving millions of dollars' worth of goods stuck in limbo. Sean Stein, the president of the U.S.-China Business Council, which represents more than 270 American companies that do business in China, said the confusion created for industry is clashing with Trump's goal of courting foreign investment. 'So far, these deals are not creating an environment that's going to lead to more investment in the U.S.,' Stein told Morning Trade in an interview, saying Trump's approach to trade and tariffs have introduced risk into the investment environment, leaving companies in 'paralysis.' One step back: Despite pledging '90 deals in 90 days' back in April, the U.S. has announced 'deals' with just four countries — including the United Kingdom, China and Vietnam — more than 180 days into the president's second term. The recent deals have not been accompanied with the release of completed texts, and diplomats say talks over the toughest terms are still dragging on. Trump most recently announced a new agreement with Indonesia on Truth Social, later telling reporters its new tariff rate would be at 19 percent but providing no further details. Trump is eyeing an Aug. 1 deadline for new tariffs on countries that fail to strike a deal with the U.S., which Commerce Secretary Howard Lutnick called a 'hard deadline' on Sunday in an interview with CBS News' 'Face the Nation with Margaret Brennan.' The administration also set an Aug. 12 target to reinstate sky-high tariffs on China unless the countries can reach a new arrangement, threatening yet another round of disruption for industries scrambling to keep up with shifting duty rates. It's complicated: Stein pointed to the lack of clarity about the terms of the deal with Vietnam as an example of the stress companies are under: Trump claimed he would slash tariffs on the country to 20 percent, or a 40 percent tariff if a product originated in a different country, but the administration has yet to clarify terms of the deal related to transhipment — leaving some companies with completed orders in limbo. The government of Vietnam has also not officially confirmed the terms of the deal, which people familiar with the discussions told POLITICO were altered at the eleventh hour. 'A day does not go by that I don't have two or three companies asking me, 'What does it mean?'' Stein said, referring to provisions of the Vietnam deal. ''What are they talking about?' Nobody knows. When you talk to people in the administration, they can't give you a clear answer about what they mean, either.' A right-leaning lobbyist from a major industry group, who frequently meets with administration officials and some of the country's largest multinational companies, said corporate leaders in all four countries have not yet received clear guidance — resulting in millions of dollars' worth of goods stranded at ports as businesses await clarity. 'The administration is not being transparent. They are not being open. There are just so many questions,' said the corporate lobbyist, who was granted anonymity to speak candidly. 'The president sees being non-transparent, being unpredictable as a real strength. He wants to keep everybody off balance. But for an administration that says, well, 'we're all about business,' it's been generally totally unresponsive and totally non-transparent.' Let's Make a Deal WHERE A ZERO-TARIFF DEAL WON'T FLY: There is no chance that South Africa would accept a trade deal with the United States that eliminates all tariffs on American goods, like the Trump administration says Vietnam and Indonesia have agreed to do, a top official at the Congress of South African Trade Unions told Morning Trade. If that's the best the United States can offer, South Africa will just live with the 30 percent tariff that Trump has threatened to impose effective Aug. 1 and try to develop new markets elsewhere, said Matthew Parks, parliamentary coordinator for the trade union group, after the annual USTR hearing on country eligibility for duty-free treatment under the African Growth and Opportunity Act on Friday. 'There's no South African company who could compete with a 30 percent tariff,' meaning 'thousands' of South African workers could lose their jobs, Parks said. Trump's earlier decision to impose a 25 percent tariff on autos and auto parts has already caused South Africa's auto exports to the United States to plummet 85 percent in recent months, he added. AGOA time running out: Friday's AGOA hearing was premised on the idea that the program will continue to exist, despite its pending expiration on Sept. 30. However, with that date less than three months away, there appears to be no chance of Congress passing a full 10- or 15-year renewal, as program supporters would like. Parks, who said he spent several days meeting with lawmakers last week, expressed hope Congress could at least approve a one- or two-year renewal before the program expires. That would provide a bridge past the 2026 congressional elections, when it might be easier to do more comprehensive reform, he said. However, spokespeople for Senate Finance and House Ways and Means did not provide any information Friday on that possibility. REGULATORY REVIEW WILL 'WAIT AND SEE' LAST? Farmers' patience with Trump could be waning as they scramble to understand and brace for a looming trade war ahead of harvest season, according to interviews conducted by POLITICO agriculture reporter Samuel Benson. Senate Ag Chair John Boozman (R-Ark.) said farmers have had a 'wait and see' attitude towards the tariffs, trusting the Trump administration's work to get new trade deals done to open new markets. But he said farmers are 'anxious' in light of Trump's slew of new tariff threats. 'Our farmers are in trouble,' Sen. Tommy Tuberville (R-Ala.) said last week. 'They're in bad trouble. I don't know whether there's anything we can do to save them, unless these tariffs work, and I hope we can. We're going to do everything we possibly can.' Background needed: Trump's farm state allies on Capitol Hill have stood by his ultimate goal of securing new markets for farmers — but it's not clear how long their patience will last. The push comes as a growing number of mostly House Republicans start to gently push back on Trump's targeting of critical sectors with tariffs. Is time running out? One agriculture industry lobbyist, granted anonymity to discuss concerns about the administration's tariff approach, said that Trump has about a month and a half to prove his trade plans are working before farmers start harvesting and selling their products. 'We're getting closer to harvest time,' the person said. 'We're getting to the point where those sales numbers are really going to matter, the prices are really going to matter.' TO THE LAND OF THE MAPLE LEAF: Senate Finance Committee ranking member Ron Wyden (D-Ore.) is leading a bipartisan group of senators to Ottawa this week to meet with Canadian Prime Minister Mark Carney and other senior officials, according to an advisory. The delegation — which includes Sens. Lisa Murkowski (R-Alaska), Maggie Hassan (D-N.H.) and Catherine Cortez Masto (D-Nev.) — aims to reaffirm U.S.-Canada ties as Ottawa faces 35 percent tariffs, effective Aug 1. TRADE OVERNIGHT — Trump and Xi Jinping tipped to meet ahead of or during Apec summit in South Korea, writes the South China Morning Post. — Tariff anxiety grips defense elites at Aspen conference, POLITICO reports. — Former ambassador to China: Beijing hasn't 'outplayed' Trump on trade, POLITICO Pro reports. — Meta rebuffs Brussels over AI rules, per POLITICO Pro. — Taiwan-US tariff deal will only impact import of cars from US, Taiwan News reports. THAT'S ALL FOR MORNING TRADE! See you again soon! In the meantime, drop the team a line: dpalmer@ ddesrochers@ and ahawkins@ Follow us @POLITICOPro and @Morning_Trade.
New Straits Times
30-04-2025
- Automotive
- New Straits Times
Trump eases auto tariffs burden as Lutnick touts first foreign trade deal
WASHINGTON/DETROIT: US President Donald Trump signed a pair of orders to soften the blow of his auto tariffs on Tuesday with a mix of credits and relief from other levies on materials, and his trade team touted its first deal with a foreign trading partner. The developments helped eased some investor worries about the erratic trade policies of Trump as the president visited Michigan, a cradle of the US auto industry, just days before a fresh set of 25 per cent import taxes was set to kick in on automotive components. The trip, on the eve of his 100th day in office, came as Americans take an increasingly dim view of Trump's economic stewardship, with indications his tariffs will weigh on growth and could drive up inflation and unemployment. In his latest partial reversal of tariff policies, the Republican president agreed to give carmakers two years to boost the percentage of domestic components in vehicles assembled domestically. It will allow them to offset tariffs for imported auto parts used in US-assembled vehicles equal to 3.75 per cent of the total value of the Manufacturer's Suggested Retail Price of vehicles they build in the US through April 2026, and 2.5 per cent of U.S. production through April 30, 2027. Auto industry leaders had lobbied the administration furiously during the weeks since Trump first unveiled his 25 per cent tariffs on imported vehicles and auto parts. The levies, aimed at forcing automakers to reshore manufacturing domestically, had threatened to scramble a North American automotive production network integrated across the US Canada and Mexico. It offers the industry a "little relief" as companies invest in more US. production, Trump said as he left Washington for Michigan. "We just wanted to help them ... if they can't get parts, we didn't want to penalise them." The White House said the change will not affect the 25 per cent tariffs imposed last month on the 8 million vehicles the United States imports annually. Autos Drive America, a group representing Toyota Motor, Volkswagen, Hyundai and nine other foreign automakers, said Trump's order provided some relief "but more must be done in order to turbocharge the US auto industry." MORE TARIFF UNCERTAINTY Candace Laing, president of the Canadian Chamber of Commerce, said the tariff fix fell short of what companies in the deeply integrated North American industry needed. "Only an end to tariffs provides real relief. Ongoing ups and downs perpetuate uncertainty, and uncertainty drives away business for both Canada and the US" she said in a statement. The uncertainty unleashed across the auto sector by Trump's tariffs remained on full display Tuesday when GM pulled its annual forecast even as it reported strong quarterly sales and profit. In an unusual move, the carmaker also opted to delay a scheduled conference call with analysts until later in the week, after the details of tariff changes were known. Meanwhile, US Commerce Secretary Howard Lutnick told CNBC he had reached a deal with one foreign power that should permanently ease the "reciprocal" tariffs Trump plans to impose. Lutnick declined to identify the country, saying the deal was pending local approvals. "I have a deal done ... but I need to wait for their prime minister and their parliament to give its approval," he said. White House officials had no further comment on the country in question, but Trump struck an upbeat tone about a deal with India, telling reporters: "India is coming along great. I think we'll have a deal with India." Lutnick's comments helped further lift stock prices that had been battered by Trump's moves to reshape global trade and force goods makers to shift production to the US. The benchmark S&P 500 Index closed 0.6 per cent higher for a sixth day of gains, its longest streak of gains since November. WRONG ON EVERY PREDICTION Trump and his team aim to strike 90 trade deals during a 90-day pause on his reciprocal tariffs announced earlier in April. His administration has repeatedly said it was negotiating bilateral trade deals with dozens of countries. A chief Trump goal is to bring down a massive US goods trade deficit, which shot to a record in March on a surge of imports aimed at front-running the levies. Trump's aggressive trade stance has cascaded through the global economy since his return to office in January, and the 90-day pause was unveiled after fears of recession and inflation sent financial markets into a tailspin. Easing the impact of auto levies is Trump's latest move to show flexibility on tariffs which have sown turmoil in financial markets, created uncertainty for businesses and sparked fears of a sharp economic slowdown. A Reuters/Ipsos poll published Tuesday showed just 36 per cent of respondents approve of his economic stewardship, the lowest level in his current term or in his 2017-2021 presidency. Meanwhile, the US will release the first quarterly report on US gross domestic product during Trump's term on Wednesday. It is expected to reflect a large drag from his tariffs, mostly from a record surge in imports as companies and consumers front-loaded purchases of foreign goods to try to beat the new levies. The economy is expected to have expanded at a 0.3 per cent annualised rate from January through March, according to a Reuters poll of economists, down from 2.4 per cent in the final three months of 2024. American and global companies are increasingly sounding the alarm about the tariffs' effects on their ability to plan. UPS on Tuesday said it would cut 20,000 jobs to lower costs, while US ketchup maker Kraft Heinz and Swedish appliances maker Electrolux were among companies citing tariff headwinds. About 40 companies worldwide have pulled or lowered their forward guidance in the first two weeks of first-quarter earnings season, a Reuters analysis showed. "Every single prediction has been proved to be wrong," Yannick Fierling, Electrolux CEO, told Reuters. "I'm surprised if people are claiming they have a view where tariffs are going."
Time of India
30-04-2025
- Automotive
- Time of India
Trump eases auto tariffs burden as Howard Lutnick touts first foreign trade deal
U.S. President Donald Trump signed a pair of orders to soften the blow of his auto tariffs on Tuesday with a mix of credits and relief from other levies on materials, and his trade team touted its first deal with a foreign trading partner. #Pahalgam Terrorist Attack The groundwork before India mounts a strike at Pakistan India considers closing airspace to Pakistani carriers amid rising tensions Cold Start: India's answer to Pakistan's nuclear threats The developments helped eased some investor worries about the erratic trade policies of Trump as the president visited Michigan, a cradle of the U.S. auto industry, just days before a fresh set of 25% import taxes was set to kick in on automotive components. The trip, on the eve of his 100th day in office, came as Americans take an increasingly dim view of Trump's economic stewardship, with indications his tariffs will weigh on growth and could drive up inflation and unemployment. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Thousands Are Saving Money Using This Wall Plug elecTrick - Save upto 80% on Power Bill Click Here Undo In his latest partial reversal of tariff policies, the Republican president agreed to give carmakers two years to boost the percentage of domestic components in vehicles assembled domestically. It will allow them to offset tariffs for imported auto parts used in U.S.-assembled vehicles equal to 3.75% of the total value of the Manufacturer's Suggested Retail Price of vehicles they build in the U.S. through April 2026, and 2.5% of U.S. production through April 30, 2027. Live Events Auto industry leaders had lobbied the administration furiously during the weeks since Trump first unveiled his 25% tariffs on imported vehicles and auto parts. The levies, aimed at forcing automakers to reshore manufacturing domestically, had threatened to scramble a North American automotive production network integrated across the U.S., Canada and Mexico. It offers the industry a "little relief" as companies invest in more U.S. production, Trump said as he left Washington for Michigan. "We just wanted to help them ... if they can't get parts, we didn't want to penalize them." The White House said the change will not affect the 25% tariffs imposed last month on the 8 million vehicles the United States imports annually. Autos Drive America, a group representing Toyota Motor , Volkswagen , Hyundai and nine other foreign automakers, said Trump's order provided some relief "but more must be done in order to turbocharge the U.S. auto industry." MORE TARIFF UNCERTAINTY Candace Laing, president of the Canadian Chamber of Commerce , said the tariff fix fell short of what companies in the deeply integrated North American industry needed. "Only an end to tariffs provides real relief. Ongoing ups and downs perpetuate uncertainty, and uncertainty drives away business for both Canada and the U.S," she said in a statement. The uncertainty unleashed across the auto sector by Trump's tariffs remained on full display Tuesday when GM pulled its annual forecast even as it reported strong quarterly sales and profit. In an unusual move, the carmaker also opted to delay a scheduled conference call with analysts until later in the week, after the details of tariff changes were known. Meanwhile, U.S. Commerce Secretary Howard Lutnick told CNBC he had reached a deal with one foreign power that should permanently ease the "reciprocal" tariffs Trump plans to impose. Lutnick declined to identify the country, saying the deal was pending local approvals. "I have a deal done ... but I need to wait for their prime minister and their parliament to give its approval," he said. White House officials had no further comment on the country in question, but Trump struck an upbeat tone about a deal with India, telling reporters: "India is coming along great. I think we'll have a deal with India." Lutnick's comments helped further lift stock prices that had been battered by Trump's moves to reshape global trade and force goods makers to shift production to the U.S. The benchmark S&P 500 Index closed 0.6% higher for a sixth day of gains, its longest streak of gains since November. WRONG ON EVERY PREDICTION Trump and his team aim to strike 90 trade deals during a 90-day pause on his reciprocal tariffs announced earlier in April. His administration has repeatedly said it was negotiating bilateral trade deals with dozens of countries. A chief Trump goal is to bring down a massive U.S. goods trade deficit, which shot to a record in March on a surge of imports aimed at front-running the levies. Trump's aggressive trade stance has cascaded through the global economy since his return to office in January, and the 90-day pause was unveiled after fears of recession and inflation sent financial markets into a tailspin. Easing the impact of auto levies is Trump's latest move to show flexibility on tariffs which have sown turmoil in financial markets, created uncertainty for businesses and sparked fears of a sharp economic slowdown. A Reuters/Ipsos poll published Tuesday showed just 36% of respondents approve of his economic stewardship, the lowest level in his current term or in his 2017-2021 presidency. Meanwhile, the U.S. will release the first quarterly report on U.S. gross domestic product during Trump's term on Wednesday. It is expected to reflect a large drag from his tariffs, mostly from a record surge in imports as companies and consumers front-loaded purchases of foreign goods to try to beat the new levies. The economy is expected to have expanded at a 0.3% annualized rate from January through March, according to a Reuters poll of economists, down from 2.4% in the final three months of 2024. American and global companies are increasingly sounding the alarm about the tariffs' effects on their ability to plan. UPS on Tuesday said it would cut 20,000 jobs to lower costs, while U.S. ketchup maker Kraft Heinz and Swedish appliances maker Electrolux were among companies citing tariff headwinds. About 40 companies worldwide have pulled or lowered their forward guidance in the first two weeks of first-quarter earnings season, a Reuters analysis showed. "Every single prediction has been proved to be wrong," Yannick Fierling, Electrolux CEO, told Reuters. "I'm surprised if people are claiming they have a view where tariffs are going."
Arab News
30-04-2025
- Automotive
- Arab News
Trump eases auto tariffs burden as Lutnick touts first foreign trade deal
WASHINGTON/DETROIT: US President Donald Trump signed a pair of orders to soften the blow of his auto tariffs on Tuesday with a mix of credits and relief from other levies on materials, and his trade team touted its first deal with a foreign trading partner. The developments helped eased some investor worries about the erratic trade policies of Trump as the president visited Michigan, a cradle of the US auto industry, just days before a fresh set of 25 percent import taxes was set to kick in on automotive components. The trip, on the eve of his 100th day in office, came as Americans take an increasingly dim view of Trump's economic stewardship, with indications his tariffs will weigh on growth and could drive up inflation and unemployment. In his latest partial reversal of tariff policies, the Republican president agreed to give carmakers two years to boost the percentage of domestic components in vehicles assembled domestically. It will allow them to offset tariffs for imported auto parts used in US-assembled vehicles equal to 3.75 percent of the total value of the Manufacturer's Suggested Retail Price of vehicles they build in the US through April 2026, and 2.5 percent of US production through April 30, 2027. Auto industry leaders had lobbied the administration furiously during the weeks since Trump first unveiled his 25 percent tariffs on imported vehicles and auto parts. The levies, aimed at forcing automakers to reshore manufacturing domestically, had threatened to scramble a North American automotive production network integrated across the US, Canada and Mexico. It offers the industry a 'little relief' as companies invest in more US production, Trump said as he left Washington for Michigan. 'We just wanted to help them ... if they can't get parts, we didn't want to penalize them.' The White House said the change will not affect the 25 percent tariffs imposed last month on the 8 million vehicles the United States imports annually. Autos Drive America, a group representing Toyota Motor, Volkswagen, Hyundai and nine other foreign automakers, said Trump's order provided some relief 'but more must be done in order to turbocharge the US auto industry.' MORE TARIFF UNCERTAINTY Candace Laing, president of the Canadian Chamber of Commerce, said the tariff fix fell short of what companies in the deeply integrated North American industry needed. 'Only an end to tariffs provides real relief. Ongoing ups and downs perpetuate uncertainty, and uncertainty drives away business for both Canada and the U.S,' she said in a statement. The uncertainty unleashed across the auto sector by Trump's tariffs remained on full display Tuesday when GM pulled its annual forecast even as it reported strong quarterly sales and profit. In an unusual move, the carmaker also opted to delay a scheduled conference call with analysts until later in the week, after the details of tariff changes were known. Meanwhile, US Commerce Secretary Howard Lutnick told CNBC he had reached a deal with one foreign power that should permanently ease the 'reciprocal' tariffs Trump plans to impose. Lutnick declined to identify the country, saying the deal was pending local approvals. 'I have a deal done ... but I need to wait for their prime minister and their parliament to give its approval,' he said. White House officials had no further comment on the country in question, but Trump struck an upbeat tone about a deal with India, telling reporters: 'India is coming along great. I think we'll have a deal with India.' Lutnick's comments helped further lift stock prices that had been battered by Trump's moves to reshape global trade and force goods makers to shift production to the US. The benchmark S&P 500 Index closed 0.6 percent higher for a sixth day of gains, its longest streak of gains since November. WRONG ON EVERY PREDICTION Trump and his team aim to strike 90 trade deals during a 90-day pause on his reciprocal tariffs announced earlier in April. His administration has repeatedly said it was negotiating bilateral trade deals with dozens of countries. A chief Trump goal is to bring down a massive US goods trade deficit, which shot to a record in March on a surge of imports aimed at front-running the levies. Trump's aggressive trade stance has cascaded through the global economy since his return to office in January, and the 90-day pause was unveiled after fears of recession and inflation sent financial markets into a tailspin. Easing the impact of auto levies is Trump's latest move to show flexibility on tariffs which have sown turmoil in financial markets, created uncertainty for businesses and sparked fears of a sharp economic slowdown. A Reuters/Ipsos poll published Tuesday showed just 36 percent of respondents approve of his economic stewardship, the lowest level in his current term or in his 2017-2021 presidency. Meanwhile, the US will release the first quarterly report on US gross domestic product during Trump's term on Wednesday. It is expected to reflect a large drag from his tariffs, mostly from a record surge in imports as companies and consumers front-loaded purchases of foreign goods to try to beat the new levies. The economy is expected to have expanded at a 0.3 percent annualized rate from January through March, according to a Reuters poll of economists, down from 2.4 percent in the final three months of 2024. American and global companies are increasingly sounding the alarm about the tariffs' effects on their ability to plan. UPS on Tuesday said it would cut 20,000 jobs to lower costs, while US ketchup maker Kraft Heinz and Swedish appliances maker Electrolux were among companies citing tariff headwinds. About 40 companies worldwide have pulled or lowered their forward guidance in the first two weeks of first-quarter earnings season, a Reuters analysis showed. 'Every single prediction has been proved to be wrong,' Yannick Fierling, Electrolux CEO, told Reuters. 'I'm surprised if people are claiming they have a view where tariffs are going.'
Japan Times
30-04-2025
- Automotive
- Japan Times
Trump eases auto tariff burden as Lutnick touts foreign trade deal
U.S. President Donald Trump signed a pair of orders to soften the blow of his auto tariffs on Tuesday with a mix of credits and relief from other levies on materials, and his trade team touted its first deal with a foreign trading partner, developments that eased investor worries about Trump's erratic trade policies. The change comes the day Trump arrived in Michigan, cradle of the U.S. auto industry, and just days before a fresh set of 25% import taxes was set to kick in on automotive components. The trip, on the eve of his 100th day in office, comes as Americans take an increasingly dim view of Trump's economic stewardship, with indications his tariffs will weigh on growth and could drive up inflation and unemployment. In his latest partial reversal of tariff policies, the Republican president agreed to provide carmakers with credits for up to 15% of the value of vehicles assembled domestically. These could be applied against the value of imported parts, allowing time to bring supply chains back home. Auto industry leaders had lobbied the administration furiously during the weeks since Trump first unveiled his 25% tariffs on imported vehicles and auto parts. The levies, aimed at forcing automakers to reshore manufacturing domestically, had threatened to scramble a North American automotive production network integrated across the U.S., Canada and Mexico. It offers the industry a "little relief" as companies invest in more U.S. production, Trump said as he left Washington for Michigan. "We just wanted to help them. ... If they can't get parts, we didn't want to penalize them." The White House noted the move does not soften the 25% tariffs imposed last month on the 8 million vehicles the United States imports annually. Autos Drive America, a group representing Toyota, Volkswagen, Hyundai and nine other foreign automakers, said Trump's order provided some relief "but more must be done in order to turbocharge the U.S. auto industry." The uncertainty unleashed across the auto sector by Trump's tariffs remained on full display Tuesday when GM pulled its annual forecast even as it reported strong quarterly sales and profit. In an unusual move, the carmaker also opted to delay a scheduled conference call with analysts until later in the week, after the details of tariff changes were known. Meanwhile, U.S. Commerce Secretary Howard Lutnick told CNBC he had reached one deal with a foreign power that should permanently ease the "reciprocal" tariffs Trump plans to impose. Lutnick declined to identify the country, saying the deal was pending local approvals. "I have a deal done ... but I need to wait for their prime minister and their parliament to give its approval," Lutnick said. Lutnick's comments helped further lift stock prices that had been battered by Trump's moves to reshape global trade and force goods makers to shift production to the U.S. The benchmark S&P 500 Index closed 0.6% higher for a sixth day of gains, its longest streak of gains since November. Trump and his team are aiming to strike 90 trade deals during a 90-day pause on his reciprocal tariffs announced earlier in April. His administration has repeatedly said it was negotiating bilateral trade deals with dozens of countries. A chief Trump goal is to bring down a massive U.S. goods trade deficit, which shot to a record in March on a surge of imports aimed at front-running the levies. Trump's aggressive trade policies have cascaded through the global economy since his return to the White House in January, and the 90-day pause was announced after financial markets went into a tailspin over fears of recession and inflation, among other factors. Softening the impact of auto levies is his administration's latest move to show flexibility on tariffs which have sown turmoil in financial markets, created uncertainty for businesses and sparked fears of a sharp economic slowdown. A Reuters/Ipsos poll published Tuesday showed just 36% of respondents approve of his economic stewardship, the lowest level in his current term or in his 2017-2021 presidency. Meanwhile, the first quarterly report on U.S. gross domestic product covering Trump's term is due out on Wednesday. It is expected to reflect a large drag from the effect of his tariffs, mostly from a record surge in imports as companies and consumers front-loaded purchases of foreign goods to try to beat the new levies. The economy was forecast to have expanded at just a 0.3% annualized rate from January through March, according to a Reuters poll of economists, down from 2.4% in the final three months of 2024. American and global companies are increasingly sounding the alarm about the tariffs' effects. UPS on Tuesday said it would cut 20,000 jobs to lower costs, while General Motors pulled its outlook and pushed its investor call to Thursday pending possible changes to trade policy. Also citing tariffs headwinds were American ketchup maker Kraft Heinz and Swedish appliances maker Electrolux, further evidence that a chaotic trade policy is taking a major toll on companies' ability to plan beyond the immediate term. About 40 companies worldwide have pulled or lowered their forward guidance in the first two weeks of first-quarter earnings season, an analysis showed. "Every single prediction has been proved to be wrong," said Electrolux CEO Yannick Fierling. "I'm surprised if people are claiming they have a view where tariffs are going."
