Latest news with #MaryLovely
Bloomberg
3 days ago
- Business
- Bloomberg
Balance of Power: Late Edition 5/30/2025
"Balance of Power: Late Edition" focuses on the intersection of politics and global business. On today's show, President Trump delivers remarks on US Steel deal in Pennsylvania. Guests include Fmr. Assistant US Attorney Nick Akerman, Senior Fellow for Intl. Economics at the Peterson Institute Mary Lovely, Senior Fellow at the Center for American Progress Jared Bernstein, Center for the Study of the Presidency and Congress Senior Democracy Fellow Jeanne Sheehan Zaino, and Republican Strategist Lisa Camooso Miller. (Source: Bloomberg)
Bloomberg
24-04-2025
- Business
- Bloomberg
How US, China Disconnect Can Impact Economy & Asia
Mary Lovely, Senior Fellow at the Peterson Institute for International Economics, shares her thoughts the current relationship between the Trump Administration and China as President Trump states the US is meeting with China while Beijing denies there's been any talks at all. Mary also talks about how the 145% tariffs against China are vitally disrupted, and how various Asian nations are handling Trump's tariff negotiations. She speaks with Kailey Leinz and Joe Mathieu on the late edition of Bloomberg's "Balance of Power." (Source: Bloomberg)
Yahoo
28-03-2025
- Automotive
- Yahoo
How Can New Auto Tariffs Impact the Economy?
Mary Lovely, Senior Fellow at the Peterson Institute for International Economics, shares her thoughts on what to expect from President Trump as he is set to announce new auto tariffs. Mary talks about how these new auto tariffs could work in conjunction with the tariffs President Trump has already announced, and if Europe will retaliate and place tariffs on US products. She speaks with Kailey Leinz and Joe Mathieu on Bloomberg's "Balance of Power." Sign in to access your portfolio
Euronews
27-03-2025
- Automotive
- Euronews
Trump imposes 25% tariffs on car imports, expecting to raise $100 billion in tax revenues
ADVERTISEMENT "This will continue to spur growth," Trump told reporters. "We'll effectively be charging a 25% tariff." The tariffs, which the White House expects to raise $100 billion (€93bn) in revenue annually, could be complicated as even US automakers source their components from around the world. The tax hike starting in April means automakers could face higher costs and lower sales, though Trump argues that the tariffs will lead to more factories opening in the United States and the end of what he judges to be a "ridiculous" supply chain in which auto parts and finished vehicles are manufactured across the United States, Canada and Mexico. To underscore his seriousness about the tariffs directive he signed, Trump said, "This is permanent." Shares in General Motors fell roughly 3% in Wednesday trading. Ford's stock was up slightly. Shares in Stellantis, the owner of Jeep and Chrysler, dropped nearly 3.6%. Trump has long said that tariffs against auto imports would be a defining policy of his presidency, betting that the costs created by the taxes would cause more production to relocate to the United States while helping narrow the budget deficit. Reduced choices and higher prices But US and foreign automakers have plants around the world to accommodate global sales while maintaining competitive prices — and it could take years for companies to design, build and open the new factories that Trump is promising. "We're looking at much higher vehicle prices," said economist Mary Lovely, senior fellow at the Peterson Institute for International Economics. "We're going to see reduced choice. ... These kinds of taxes fall more heavily on the middle and working class.'' She said more households will be priced out of the new car market — where prices already average about $49,000 (€45,450)— and will have to hang on to aging vehicles. The tariffs on autos would start being collected on 3 April, Trump said. If the taxes are fully passed onto consumers, the average auto price on an imported vehicle could jump by $12,500 (€11,595), a sum that could feed into overall inflation. Trump was voted back into the White House last year because voters believed he could bring down prices. Reaction from trade partners Foreign leaders were quick to criticise the tariffs, a sign that Trump could be intensifying a broader trade war that could damage growth worldwide. "This is a very direct attack," Canadian Prime Minister Mark Carney said. "We will defend our workers. We will defend our companies. We will defend our country." In Brussels, European Commission President Ursula von der Leyen expressed regret at the US decision to target auto exports from Europe and vowed that the bloc would protect consumers and businesses. "Tariffs are taxes — bad for businesses, worse for consumers equally in the US and the European Union," she said in a statement, adding that the EU's executive branch would assess the impact of the move, as well as other US tariffs planned for coming days. As Trump announced the new tariffs, he indicated that he would like to provide a new incentive to help car buyers by allowing them to deduct from their federal income taxes the interest paid on auto loans, so long as their vehicles were made in America. That deduction would eat into some of the revenues that could be generated by the tariffs. ADVERTISEMENT The new tariffs would apply to both finished autos and parts used in the vehicles, according to a White House official who spoke on the condition of anonymity to discuss the taxes on a call with reporters. The tariffs would be on top of any existing taxes and were legally based on a 2019 Commerce Department investigation that occurred during Trump's first term on national security grounds. For autos and parts under the USMCA trade pact applying to the United States, Mexico and Canada, the 25% tariffs would only apply to non-US content. The administration is reasoning that there is excess capacity at US automakers that will enable them to ramp up production to avoid the tariffs by manufacturing more domestically, with the official noting that automakers have known since the Trump campaign that tariffs were coming. How a broader global trade war is shaping up The auto tariffs are part of a broader reshaping of global relations by Trump, who plans to impose what he calls "reciprocal" taxes on 2 April that would match the tariffs, sales taxes charged by other nations. ADVERTISEMENT Trump has already placed a 20% import tax on all imports from China for its role in the production of fentanyl. He similarly placed 25% tariffs on Mexico and Canada, with a lower 10% tax on Canadian energy products. Parts of the Mexico and Canada tariffs have been suspended, including the taxes on autos, after automakers objected and Trump responded by giving them a 30-day reprieve that is set to expire in April. The president has also imposed 25% tariffs on all steel and aluminum imports, removing the exemptions from his earlier 2018 taxes on the metals. He also plans tariffs on computer chips, pharmaceutical drugs, lumber and copper. His taxes risk igniting a broader global trade war with escalating retaliations that could crush global trade, potentially hurting economic growth while raising prices for families and businesses as some of the costs of the taxes get passed along by importers. When the European Union retaliated with plans for a 50% tariff on U.S. spirits, Trump responded by planning a 200% tax on alcoholic beverages from the EU. ADVERTISEMENT Trump also intends to place a 25% tariff on countries that import oil from Venezuela, even though the United States also imports oil from that nation. Trump's aides maintain that the tariffs on Canada and Mexico are about stopping illegal immigration and drug smuggling. But the administration also wants to use the tariff revenues to lower the budget deficit and assert America's preeminence as the world's largest economy. The president on Monday cited plans by South Korean automaker Hyundai to build a $5.8bn (€5.38bn) steel plant in Louisiana as evidence that tariffs would bring back manufacturing jobs. Slightly more than 1 million people are employed domestically in the manufacturing of motor vehicles and parts, about 320,000 fewer than in 2000, according to the Bureau of Labor Statistics. An additional 2.1 million people work at auto and parts dealerships. ADVERTISEMENT The United States last year imported nearly 8 million cars and light trucks worth $244bn (€226bn). Mexico, Japan and South Korea were the top sources of foreign vehicles. Imports of auto parts came to more than $197bn (€183bn), led by Mexico, Canada and China, according to the Commerce Department.
Boston Globe
26-03-2025
- Automotive
- Boston Globe
Trump places 25% tariff on imported autos, expecting to raise $100 billion in tax revenues
Advertisement To underscore his seriousness, Trump said, 'This is permanent.' Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up Shares in General Motors fell roughly 3 percent in Wednesday trading. Ford's stock was up slightly. Shares in Stellantis, the owner of Jeep and Chrysler, dropped nearly 3.6 percent. Trump has long said that tariffs against auto imports would be "We're looking at much higher vehicle prices,' said economist Mary Lovely, senior fellow at the Peterson Institute for International Economics. 'We're going to see reduced choice. ... These kinds of taxes fall more heavily on the middle and working class.'' She said more households will be priced out of the new car market — where prices already average about $49,000 — and will have to hang on to aging vehicles. The tariffs on autos would start being collected on April 3, Trump said. If the taxes are fully passed onto consumers, the average auto price could jump by $12,500, a sum that could feed into overall inflation. Trump returned to the White House after losing the 2020 election in large part because voters believed he could bring down prices. Advertisement As Trump announced the new tariffs, he indicated that he would like to provide a new incentive to help car buyers by allowing them to deduct from their federal income taxes the interest paid on auto loans, so long as their vehicles were made in America. That deduction would eat into some of the revenues that could be generated by the tariffs. The auto tariffs are part of a broader reshaping of global relations by Trump, who plans to impose what he calls Trump has already placed a 20 percent import tax on all imports from China for its role in the production of fentanyl. He similarly placed 25 percent tariffs on Mexico and Canada, with a lower 10 percent tax on Canadian energy products. Parts of the Mexico and Canada tariffs have been suspended, including the taxes on autos, after automakers objected and Trump responded by giving them The president has also imposed 25 percent tariffs on all steel and aluminum imports, removing the exemptions from his earlier 2018 taxes on the metals. He also plans tariffs on computer chips, pharmaceutical drugs, lumber, and copper. His taxes risk igniting a broader global trade war with escalating retaliations that could crush global trade, potentially hurting economic growth while raising prices for families and businesses as some of the costs of the taxes get passed along by importers. When the European Union retaliated with plans for Advertisement Trump also intends to place a 25 percent tariff on countries that Trump's aides maintain that the The president on Monday cited plans by South Korean automaker Hyundai to build a $5.8 billion steel plant in Louisiana as evidence that tariffs would bring back manufacturing jobs. Slightly more than one million people are employed domestically in the manufacturing of motor vehicles and parts, about 320,000 fewer than in 2000, according to the Bureau of Labor Statistics. Another 2.1 million people work at auto and parts dealerships. The United States last year imported nearly 8 million cars and light trucks worth $244 billion. Mexico, Japan, and South Korea were the top sources of foreign vehicles. Imports of auto parts came to more than $197 billion, led by Mexico, Canada, and China, according to the Commerce Department.
