Latest news with #Mexican-made
Yahoo
15-05-2025
- Business
- Yahoo
Tariffs are threatening your air conditioning bill this summer
Many consumers will pay more for air conditioning this summer as President Donald Trump's trade war collides with existing price pressures, a coolant shortage and scorching forecasts that are set to drive up utility bills. 'It is a sad time to need a new HVAC system,' said Scott Shelton, owner of Charlotte Comfort Systems in North Carolina. Heating, ventilation and air conditioning contractors say they've been weathering higher costs since the post-Covid recovery, for everything from labor and raw materials to a newly mandated refrigerant. With supply chains stretching deep into countries facing new tariffs, HVAC firms say it's impossible to avoid passing at least some of the higher costs on to customers. Shelton estimates his expenses have already risen by 80% since the pandemic. 'It'll affect lower and middle classes more than I've seen in my 38 years' experience in this industry,' he said of ongoing and expected cost increases. The prices U.S. manufacturers charge for HVAC and refrigeration equipment remain near the record highs they hit last summer, before Trump won re-election, and some contractors expect his levies to drive them higher. Take a component that cost $1,000 in March, said Aydin Mehr, who manages Denver-based UniColorado Heating and Cooling: 'Currently it's going to cost $1,100,' he said. 'In September, that same thing will cost $1,300 to 1,400.' Adding to the expected squeeze are steeper utility bills for many households. U.S. residential electricity costs are forecast to average $784 this summer, up 6.2% since last season and the highest level in 12 years, the National Energy Assistance Directors Association (NEADA) said Thursday. An early heat wave is already baking the Southwest and Texas this week, with Oklahoma City, San Antonio, Austin, Houston and Dallas breaking May records. Mehr voiced concerns about this summer. 'We're stockpiling like crazy to keep our prices low as long as possible,' he said, but his inventory is 'already diminishing rapidly.' Some top air-conditioner makers are responding to the Trump administration's reshoring push, with Carrier on Tuesday announcing a $1 billion five-year investment to expand domestic production. Analysts say the HVAC sector is relatively well-positioned to handle tariffs, including on steel and aluminum. But the industry still relies heavily on overseas suppliers, and contractors say many American importers are already curbing shipments, unsure which tariffs will stick. The United States imported more than $15 billion worth of air conditioners last year, about five times as much as it exported, according to the Observatory of Economic Complexity. Mexico and China — which currently face double-digit blanket tariffs — accounted for the largest shares of U.S. spending on AC imports, at 50% for Mexico and 19% for China. Analysts estimate less than half of Mexican-made HVAC equipment complies with the U.S.-Mexico-Canada Trade Agreement, the deal Trump brokered in his first term that spares some Mexican and Canadian goods from the 25% tariffs he imposed on them in his second. Many suppliers, which typically purchase on 90-day schedules, had already halted ordering by the time the U.S. and China agreed Monday to pause most of their tariffs for 90 days, Mehr said. 'In the best-case scenario, we're going to have a Covid-style type of thing where they're going to be waiting months just to get their stuff,' he predicted. A key factor is the industrywide shortage of R-454B, the more eco-friendly coolant that regulators began requiring in January under a bipartisan measure Trump signed in 2020. Mehr was expecting a major manufacturer to ship new heat pumps that use R-454B in mid-April, 'but it still hasn't shipped because they didn't import the parts from China to finish them.' He foresees the worst of the refrigerant shortage to last until mid-June or early July, easing right around when supplies of budget to midgrade AC units may start to dwindle. These fears may not pan out nationwide, or at all, but the coolant crunch is already driving up costs and delaying installations as manufacturers hike prices. Appliance giant Honeywell last month announced a 42% surcharge on R-454B, citing 'the cumulative effect of increased costs and raw materials' amid strong demand. Some HVAC contractors even accuse manufacturers of using supply-chain disruptions to price-gouge. Makers of cooling systems announced tariff-related price hikes 'before it even became real,' said Barton James, president and CEO of the Air Conditioning Contractors of America. 'The whole industry continues to test the waters on what's the breaking point for the consumer. And right now, we've not found it.' The Air-Conditioning, Heating and Refrigeration Institute called that allegation 'offensive.' The manufacturing trade group's members have their own concerns about the uncertainty posed by 'on again/off again tariffs,' spokesperson Francis Dietz said in a statement. 'Far from using tariffs as a cover to raise prices, manufacturers are going out of their way to minimize the economic impacts' and keep products affordable. Home Depot acknowledged a 'fluid environment' but declined to comment on specific product categories, and Lowe's didn't respond to a request for comment. Both home improvement giants report earnings next week. A White House spokesperson didn't respond to a request for comment. The crunch comes as meteorologists anticipate above-average temperatures in much of the U.S. this summer, after 2024 became the hottest summer on record. The National Weather Service forecasts excessive heat to generate hotspots from Maryland to Maine and Oregon to Texas. Parts of Utah, Nevada, Colorado and New Mexico are most likely to see hotter-than-average days over the next three months. With extreme heat exacerbated by climate change becoming more frequent, researchers say U.S. heat-related deaths have more than doubled in recent decades. This year there could be less federal aid to help households keep their homes at safe temperatures. Shortly after gutting the entire staff of the Low Income Home Energy Assistance Program, Trump proposed a budget that would slash the initiative's $4 billion in funding to zero. LIHEAP was established in 1981 to help struggling families cover home heating and, later, cooling costs including AC installations. But it has been strained by what advocates describe as chronic funding shortfalls coupled with surging demand for summertime relief. NEADA, which represents state officials who disburse LIHEAP aid, estimates that households facing utility arrears now owe a cumulative $21 billion, the most in four years. 'Without access to affordable cooling, many will be at risk of heat stroke and other health impacts associated with rising temperatures,' NEADA Executive Director Mark Wolfe said in a statement. This article was originally published on
NBC News
15-05-2025
- Business
- NBC News
Tariffs are threatening your air conditioning bill this summer
Many consumers will pay more for air conditioning this summer as President Donald Trump's trade war collides with existing price pressures, a coolant shortage and scorching forecasts that are set to drive up utility bills. 'It is a sad time to need a new HVAC system,' said Scott Shelton, owner of Charlotte Comfort Systems in North Carolina. Heating, ventilation and air conditioning contractors say they've been weathering higher costs since the post-Covid recovery, for everything from labor and raw materials to a newly mandated refrigerant. With supply chains stretching deep into countries facing new tariffs, HVAC firms say it's impossible to avoid passing at least some of the higher costs on to customers. Shelton estimates his expenses have already risen by 80% since the pandemic. It is a sad time to need a new HVAC system. Scott Shelton, owner of Charlotte Comfort Systems, Charlotte, N.C. 'It'll affect lower and middle classes more than I've seen in my 38 years' experience in this industry,' he said of ongoing and expected cost increases. The prices U.S. manufacturers charge for HVAC and refrigeration equipment remain near the record highs they hit last summer, before Trump won re-election, and some contractors expect his levies to drive them higher. Take a component that cost $1,000 in March, said Aydin Mehr, who manages Denver-based UniColorado Heating and Cooling: 'Currently it's going to cost $1,100,' he said. 'In September, that same thing will cost $1,300 to 1,400.' Adding to the expected squeeze are steeper utility bills for many households. U.S. residential electricity costs are forecast to average $784 this summer, up 6.2% since last season and the highest level in 12 years, the National Energy Assistance Directors Association (NEADA) said Thursday. An early heat wave is already baking the Southwest and Texas this week, with Oklahoma City, San Antonio, Austin, Houston and Dallas breaking May records. Mehr voiced concerns about this summer. 'We're stockpiling like crazy to keep our prices low as long as possible,' he said, but his inventory is 'already diminishing rapidly.' Some top air-conditioner makers are responding to the Trump administration's reshoring push, with Carrier on Tuesday announcing a $1 billion five-year investment to expand domestic production. Analysts say the HVAC sector is relatively well-positioned to handle tariffs, including on steel and aluminum. But the industry still relies heavily on overseas suppliers, and contractors say many American importers are already curbing shipments, unsure which tariffs will stick. The United States imported more than $15 billion worth of air conditioners last year, about five times as much as it exported, according to the Observatory of Economic Complexity. Mexico and China — which currently face double-digit blanket tariffs — accounted for the largest shares of U.S. spending on AC imports, at 50% for Mexico and 19% for China. Analysts estimate less than half of Mexican-made HVAC equipment complies with the U.S.-Mexico-Canada Trade Agreement, the deal Trump brokered in his first term that spares some Mexican and Canadian goods from the 25% tariffs he imposed on them in his second. Many suppliers, which typically purchase on 90-day schedules, had already halted ordering by the time the U.S. and China agreed Monday to pause most of their tariffs for 90 days, Mehr said. 'In the best-case scenario, we're going to have a Covid-style type of thing where they're going to be waiting months just to get their stuff,' he predicted. A key factor is the industrywide shortage of R-454B, the more eco-friendly coolant that regulators began requiring in January under a bipartisan measure Trump signed in 2020. Mehr was expecting a major manufacturer to ship new heat pumps that use R-454B in mid-April, 'but it still hasn't shipped because they didn't import the parts from China to finish them.' We're stockpiling like crazy to keep our prices low as long as possible. Aydin Mehr, general manger of UniColorado Heating and Cooling, Denver He foresees the worst of the refrigerant shortage to last until mid-June or early July, easing right around when supplies of budget to midgrade AC units may start to dwindle. These fears may not pan out nationwide, or at all, but the coolant crunch is already driving up costs and delaying installations as manufacturers hike prices. Appliance giant Honeywell last month announced a 42% surcharge on R-454B, citing 'the cumulative effect of increased costs and raw materials' amid strong demand. Some HVAC contractors even accuse manufacturers of using supply-chain disruptions to price-gouge. Makers of cooling systems announced tariff-related price hikes 'before it even became real,' said Barton James, president and CEO of the Air Conditioning Contractors of America. 'The whole industry continues to test the waters on what's the breaking point for the consumer. And right now, we've not found it.' The Air-Conditioning, Heating and Refrigeration Institute called that allegation 'offensive.' The manufacturing trade group's members have their own concerns about the uncertainty posed by 'on again/off again tariffs,' spokesperson Francis Dietz said in a statement. 'Far from using tariffs as a cover to raise prices, manufacturers are going out of their way to minimize the economic impacts' and keep products affordable. Home Depot acknowledged a 'fluid environment' but declined to comment on specific product categories, and Lowe's didn't respond to a request for comment. Both home improvement giants report earnings next week. A White House spokesperson didn't respond to a request for comment. The crunch comes as meteorologists anticipate above-average temperatures in much of the U.S. this summer, after 2024 became the hottest summer on record. The National Weather Service forecasts excessive heat to generate hotspots from Maryland to Maine and Oregon to Texas. Parts of Utah, Nevada, Colorado and New Mexico are most likely to see hotter-than-average days over the next three months. With extreme heat exacerbated by climate change becoming more frequent, researchers say U.S. heat-related deaths have more than doubled in recent decades. This year there could be less federal aid to help households keep their homes at safe temperatures. Shortly after gutting the entire staff of the Low Income Home Energy Assistance Program, Trump proposed a budget that would slash the initiative's $4 billion in funding to zero. LIHEAP was established in 1981 to help struggling families cover home heating and, later, cooling costs including AC installations. But it has been strained by what advocates describe as chronic funding shortfalls coupled with surging demand for summertime relief. NEADA, which represents state officials who disburse LIHEAP aid, estimates that households facing utility arrears now owe a cumulative $21 billion, the most in four years. 'Without access to affordable cooling, many will be at risk of heat stroke and other health impacts associated with rising temperatures,' NEADA Executive Director Mark Wolfe said in a statement.
Business Insider
14-05-2025
- Automotive
- Business Insider
You can still get a good deal on a new car — but act fast
Worries about a possible recession and the Trump administration's tariffs on imported cars have created upheaval not only within the automotive industry, but also for consumers. Automotive-industry experts and dealers told Business Insider that, even though prices are still going up, there are deals to be had while abundant inventory sits on lots — but it may not be that way for long. "With the tariffs, sometimes, moment to moment, you're not sure what's going to happen, things could change while I'm talking to you," Beau Boeckmann, president and COO of California-based dealership group Galpin Motors, told Business Insider. The precarious situation has left many car shoppers in limbo, wondering whether they should buy now or wait for the storm to pass. This is the fifth installment of BI's six-part series on making major life decisions in periods of immense policy-driven change. We've already covered best practices for: Starting a business Buying a house Switching jobs Investing in stocks Buy now, save now Depleting pre-tariff inventory and higher manufacturing or import costs, leading to impending price hikes, mean you shouldn't wait to buy a new car. "I just don't see how it helps someone to wait, assuming they have already decided that they're going to buy a new or used car," Brian Moody, executive editor of vehicle valuation and automotive research firm Kelley Blue Book, told BI. The latest data, from the end the March, shows the automotive industry average at 70 days of supply, totaling just under 2.7 million cars, according to data from Cox Automotive, the parent company of Kelley Blue Book. Sixty days is generally considered a healthy amount of inventory for a carmaker. There are still good deals to be had if you act fast However, upcoming shipments of new vehicles, including Canadian and Mexican-made models whose non-North American-made parts are subject to the 25% tariffs, will likely be affected by the protectionist measures. Experts at the Center for Automotive Research estimate the total cost of a new car will increase anywhere from $4,200 for domestically made vehicles with imported parts to $8,700 for models built outside the US. That's on top of an average sticker price of $48,699 in April, about $1,200 higher than last year. "Prices are going up. We see it potentially just around the corner in May, there being a potential significant price increase across the board with some brands more than others," Boeckmann, whose family of dealerships includes a dozen different brands like Ford, Honda, Mazda, Volkswagen, and Volvo, said. Some automakers have more vehicles in stock while others have far less inventory. According to data from Cox Automotive, Lexus and Toyota had the leanest inventory in the industry, with just 30 and 32 days' supply, respectively, at the end of March. At the other end of the spectrum, major brands like Nissan, Hyundai, and Ford all have between 90 and 100 days' supply. "I'd look there," Moody said of the brands with greater available inventory. Now may also be a good time to explore the possibility of owning an EV, with industry inventory at an average of 93 days, according to March sales data from Cox Automotive. Still, even those who have seen inventories decline 26% since March of 2024. The Trump administration's decision to levy a 25% tariff on imported automobiles and parts at the beginning of April triggered a litany of reactive measures by automakers. Ford, for example, instituted an employee discount for consumers on most of their models until June 2, while Nissan lowered the prices on two of their most popular SUVs, the Rogue and Pathfinder, by up to $1,900. There are other discounts out there, but you'll need to act fast. "So I think for consumers out there, look and see if there are inventive programs in the category that you want, and if you are open to different brands," Edmunds' Caldwell said. It's a great time to trade in a used car, but not to buy one With new car prices on the rise, many consumers have turned to the used car market in search of a good deal. Unfortunately, now is not a good time if you're in search of a good used car deal. The used car market is fueled by the availability of two- to three-year-old cars coming off leases. Production delays caused by the pandemic and subsequent chip shortage limited the number of new cars leased in recent years, resulting in constrained used car inventory today. "This will probably be the worst year for lease returns, because of the chip shortage three years ago," Edmunds analyst Caldwell told us. According to data from Cox Automotive, used car inventory shrank to just 39 days' supply at the end of March, down from 43 days in February. This was driven by tax refunds and the threat of looming tariffs. In fact, the same data set showed that used car sales increased by 181,000 units compared to March last year. Average used car prices have been relatively stable over the past year, hovering around the $25,000 mark, but increased by $180 between February and March. With used cars becoming more valuable, dealerships like those operated by Boeckmann's Galpin Motors have started offering more money for trade-ins, making new cars more affordable for consumers. This further enriches the value proposition of choosing a new car over a used one.
Business Insider
11-05-2025
- Entertainment
- Business Insider
The battle for America's beer drinkers
Bud Light was the king of beers for a long time in the United States. Sure, its sibling brand, Budweiser, had the formal title, but based on sales, the lighter lager was on top for decades. A couple of years ago, in the face of a cultural firestorm and changing consumer tastes, Bug Light lost its crown. Mexican-made Modelo took its place as the top-selling beer in America in retail, becoming the new rey of beers, if you will. Now, politics may be scrambling the beer space again, and not in Modelo's favor. To back up a bit, 2023 was tough for Bud Light. That spring, it sent Dylan Mulvaney, a transgender influencer, a handful of beer cans as part of a marketing campaign, and all hell broke loose. The incident sparked an enormous backlash among conservatives, including widespread calls for boycotts. While most of the time, these types of consumer upheavals are ineffectual and short-lived, that wasn't the case for Bud Light. It saw a meaningful decline in sales. The same year, Modelo surpassed Bud Light as the best-selling beer in the US. While the Bud Light dustup may have accelerated the flip, Modelo's advance had been coming for a while. Bud Light had been experiencing declines for years. Meanwhile, Modelo was growing consistently, riding the wave of growing consumer interest in imported beers and America's growing Hispanic population, which likes Modelo, in particular. Whereas 2023 was a rough ride for Bud Light, 2025 might be similar for Modelo. The brand is still going strong, but political developments like tariffs and immigration crackdowns may be a blip that could, once again, accelerate ongoing consumer trends in the beer industry. That doesn't mean Bud Light will vault back to the top — one of its sister brands, Michelob Ultra, is giving everyone a run for their money. As Kate Bernot, the lead analyst at Sightlines, which researches the alcohol industry, puts it, "Michelob Ultra has just been quietly doing its thing and killing it." Dave Infante, who writes a Substack about drinking called Fingers, tells me that given what happened a couple of years ago, the beer industry is likely building in "contingency plans for these major shifts" and steeling itself for more upheaval. "The industry just saw a major tectonic shift in 2023 and understands that if such a thing happens again with Modelo, opportunities are going to ripple out from it," he says. Executives at Constellation Brands, the company behind beers such as Modelo and Corona, have been open about the fact that the policies emanating from the White House are creating some serious what-ifs. First, there are tariffs. While Mexican-made beer isn't being hit with an import tax, the cans it comes in are, thanks to a 25% tariff on aluminum. "They basically brew all their beer in Mexico and they sell it in the US," Garrett Nelson, an equity research analyst at CFRA Research, says. "Thirty-nine percent of their beer is shipped in aluminum cans, and that's still subject to the 25% tariff." The industry just saw a major tectonic shift in 2023 and understands that if such a thing happens again with Modelo, opportunities are going to ripple out from it. TD Cowen estimated that the aluminum tariffs could cost Constellation $1 billion annually. In its most recent earnings call, Constellation disappointed investors with its guidance outlook. Most analysts I spoke to for this story, however, say the tariffs as they currently stand won't be a killer for Constellation or its customers. The aluminum tariffs will hit its competitors who import the material as well, Bernot says, and the company can likely absorb the cost hit without customers seeing a massive spike in Modelo's price. And if Constellation does need to raise prices, their consumers will probably be OK paying some of that increased cost. "They're confident enough in the grip of their brands that they can increase prices a little more easily without consumer pushback than, say, a Bud Light or some other domestic brand," Nelson says. Part of Bud Light's problem has been that it's pretty easy for consumers to swap out for a Coors Light or a Miller Lite. Modelo's loyal drinkers are a little stickier. Kaleigh Theriault, an associate director of beverage alcohol thought leadership at NIQ, points out that amid post-pandemic inflation in 2022, domestic beer brands raised prices more than imports, giving imported brands like Modelo a little more room now. "Domestic beer has taken up price so much over the past two years that consumers and shoppers have sort of turned away, or they've recognized how much domestic beer prices have increased, and that might be influencing their purchase of imports or that might be kind of the reason that they're slowing down their purchasing of domestic beer or just beer overall," Theriault says. While the outlook isn't too scary now, President Donald Trump's trade war and tariff tactics have been volatile. He's t hreatened to put tariffs on all goods from Mexico in the past, and while the liquid in the beer cans isn't subject to tariffs now, there's no guarantee that won't change. Modelo's headaches may be more acute when it comes to the president's immigration crackdown and the anxieties it's causing. Immigration raids and the Trump administration's hostile approach to foreigners living in the United States may be putting some Hispanic consumers on edge. They're worried about shopping, in case they're asked to show ID, staying home more, and may be pulling back on spending in the event someone from their household is detained. And like many consumers across demographics, they're under pressure economically. "They're afraid to go shopping, whether they're here illegally or they're here illegally, that Hispanic shopper is afraid to go out," Bump Williams, an alcohol industry consultant, says. He recently conducted a survey of about 200 Hispanic families, and two-thirds of them said they had changed shopping behavior or were concerned about going shopping. Williams also says retailers in heavily Hispanic markets have reported declines in foot traffic. Jefferies analysts recently wrote in a note to clients that there appears to be a correlation between encounters at the Mexican border and consumption trends. Hispanic consumers represent about half of Constellation's overall beer business. In the company's most recent earnings call, the company's CEO, Bill Newlands, said that two-thirds of Hispanic consumers were "concerned about higher prices on things like food, gas, and other essentials," and over half were "concerned relative to immigration issues." They're also worried about job losses in industries with a high number of Latino employees. "What does that do? That has tended to mean that the consumer has pulled back on spending on a number of categories," Newlands said. Beer is quite a ways down the list compared to other areas of spending, such as on restaurants, he added, "but it's certainly on the list, because things like social gatherings, an area where the Hispanic consumer often consumes beer, are declining today as part of these overarching concerns that they have." Constellation Brands and AB InBev did not respond to requests for comment for this story. Current troubles for Constellation and its brands, such as Modelo and Corona, aren't likely to be a full-blown disaster. But they may represent an opportunity for competitors, including Anheuser-Busch InBev, to make some inroads. Bud Light has done a lot to try to claw back consumers from its 2023 snafu, including becoming the official beer sponsor of the UFC in 2024 and generally trying to keep its marketing as uncontroversial as possible. Still, it's been on the downswing for a while — its volumes peaked in 2008. "Bud Light's not going to be the comeback winner on this one," Williams says. While the brand has managed to stop much of the bleeding from 2023 and 2024, it's still declining. "It's got a very slim chance to reclaim the title of the No. 1 brand in the country." Recent data from the National Beer Wholesalers Association and Fintech, a payments company in the alcohol space, found that in the first quarter of the year Bud Light saw the biggest loss of market share in on-premise purchases (think restaurants and bars) as well as off-premise retail purchases (think grocery stores or gas stations) of the top 10 alcohol brands it tracks. While Bud Light remains quite popular, it's not on the growth track. The opposite is true for another AB InBev brand, Michelob Ultra. Per the NBWA and Fintech, Michelob had the biggest share gain during the first quarter of the year. "Michelob Ultra now, for all intents and purposes, is Anheuser Busch's flagship beer, its star beer," Bernot says. "It's a really strong brand." Michelob's gains may not necessarily be Modelo's losses — the latter remains the No. 1 imported beer, has a loyal customer base, and, as mentioned, may have some room to push up prices if it needs to. Modelo's customers aren't switching brands; some of them may just temporarily be buying less of it. In contrast to Bud Light, Michelob has a better-for-you air to it. It's marketed as low-carb and low-calorie and leans into a health angle, as an option that can be part of a fit lifestyle. To many consumers, Bud Light feels more regular and generic, even if it's also a light beer. The three brands may be locked in a tight race for America's beer crown, but that's because Modelo, Bud Light, and Michelob all appeal to a wide array of consumers. If Hispanic consumers are pulling back on Modelo purchases, that probably means they're buying less Bud Light and Michelob, too. If their customers do start to switch up habits, it's not clear they'll be swapping one for the other. If you give up on Bud Light, you're probably going to go for a Coors Light or Miller Lite first. If Modelo gets too pricey, you may look for another premium or import brand. To a large extent, these brands' fates are in their own hands. Bud Light is trying to get back drinkers it lost and attract new ones. Modelo has a pretty unique appeal that is very much at the center of its US parent company's overall strategy. "That brand is able to command that premium price point because of long-standing American consumer attraction to the exoticism and the vision of paradise that marketers have really been able to shape around the Corona and to some extent the Modelo brands," Infante says. "And Modelo also has a really compelling marketing campaign that it ran for many years about the 'fighting spirit' that really resonated." Beer overall is just having a tough go of it in general. As for Mich Ultra, its image as the healthier option boosts its appeal — it's for after-work drinks, but also after-run drinks or an afternoon on the golf course. In fall 2024, Michelob Ultra Zero was introduced, a nonalcoholic option meant to capitalize on the growing NA trend. It's a marketing opportunity for the flagship brand to generate excitement, solidify the wellness-conscious halo around it, and take up more store space with both alcoholic and nonalcoholic options. The analysts I spoke to were mixed on whether this meant Michelob could depose Modelo. Thierault thinks it's unlikely Michelob will become first anytime soon. Williams, on the other hand, says Michelob Ultra "has a really good shot at surpassing Modelo Especial as the No. 1 beer brand in the United States this year." Ultimately, it may be long-term structural trends that are more important, just as they were when Modelo surpassed Bud Light in 2023. In that scenario, Modelo continues to grow, despite hurdles, just like Michelob. Bud Light remains quite popular, especially in draft and at bars, but its overall fortunes don't appear to be on track to reverse. The beer industry's leaderboard could shift again, depending on politics, perception, and pricing power. But if and when that happens is still TBD. In the meantime, beer as a sector is not having a blockbuster year anyway. "Beer overall is just having a tough go of it in general," Bernot says. "It's important to put any certain brand declines or struggles in the larger picture of beer is just not doing great."
Miami Herald
07-05-2025
- Automotive
- Miami Herald
Ford Increases Prices on Popular Models, Citing Tariffs
Business Ford Increases Prices on Popular Models, Citing Tariffs Your favorite Ford may get a bit pricier. Amid growing car industry sentiment centered on the impact of new, hefty trade tariffs, Dearborn-based automaker Ford is raising prices of its Mexican-made cars for its U.S. customers. According to a new report by Reuters, a notice sent to dealers showed that prices on popular models like the Mustang Mach-E electric SUV, Maverick pickup and Bronco Sport will receive a price bump by as much as $2,000. A Ford spokesperson told the outlet that the price increases will affect cars built after May 2, which are expected to arrive at U.S. dealers by late June. They noted that the price hikes reflect "usual" mid-year pricing adjustments, along with "some tariffs we are facing," adding that the company has "not passed on the full cost of tariffs to our customers." The price increases affect some of Ford's more popular nameplates. According to data released by Ford, the three models experienced strong sales in 2024, as well as the first quarter of 2025. In Q1, Ford managed to move 21% more Mustang Mach-e EVs (11,607 in Q1 2025 v. 9,589 in Q1 2024) over the same time period last year and 5.7% more Bronco Sports (33,363 v. 31,565), though Maverick sales saw a slight 2.7% dip (38,015 v. 39,061). Ford View the 3 images of this gallery on the original article Ford's tariff impact Ford's announcement to its dealers comes the same week as it told investors and Wall Street analysts the full scope of the impact of cross-border tariffs on the automaker. The Administration stands firm on its 25% tariff on imported vehicles. However, President Trump recently softened his tariff policy regarding foreign auto parts, introduced a program that credits automakers for what is produced in the United States, and removed provisions that would make automakers pay double tariffs on raw materials. Following the footsteps of its crosstown rival General Motors, Ford suspended its full-year guidance on May 5, as it expects to take a roughly $1.5 billion gross hit to its earnings from the tariffs, hoping to offset $1 billion from $2.5 billion in tariff costs through internal actions and other adjustments. Preciously, Ford expected to take in earnings between $7 billion and $8.5 billion for the year, however, CEO Jim Farley warned that it is still too early to predict exactly how much the recently implemented tariffs will actually affect the global supply chain. "It's a pretty dynamic situation […] I think this is all really new for all of us," Farley told analysts during its earnings call. Related: Ford CEO Jim Farley Says This Policy Would Help the U.S. Auto Industry However, the CEO also reiterated that the Ford's domestic footprint gives it an edge over its Detroit rivals, noting that "this new environment in which automakers with the largest US footprint will have a big advantage." Additionally, Farley noted on the earnings call that it "supports the administration's goal to strengthen the US economy by growing American manufacturing," as well as "a level playing field globally for domestic and foreign OEMs." "We also appreciate the ongoing cooperation we've had with the administration," Farley said. "As America's largest auto manufacturer, our engagement with Washington is helping US policymakers better understand how their proposed policy changes would impact our industry and of course, our communities." Final thoughts In recent media appearances, CEO Jim Farley reiterated that Ford makes most of its U.S.-bound vehicles in the U.S., citing in an April 30 Fox Business appearance that "85%" of such are built here. During the earnings call on Monday, he added that Ford "assembled over 300,000 more vehicles in the US than our closest competitor," including "100% of all our full-size trucks." However, he also noted that while other manufacturers build in the U.S., adapting to the tariffs means that they would have to "absorb higher costs, invest capital," which "will take time," adding that "It's not as simple as just assembling more vehicles in the US." "OEMs must also balance customer affordability, which means the ability to import parts tariff-free," he said to analysts. With this in mind and Farley's idea of crediting automakers who export from U.S. factories, I do not expect Ford to be the only automaker to increase prices for its U.S. customers in light of recent tariffs, unless more comprehensive and fruitful dialogue between the current Administration and automakers happen. Related: Audi may Build Future EVs in the United States Due to Tariffs Copyright 2025 The Arena Group, Inc. All Rights Reserved. This story was originally published May 7, 2025 at 2:08 PM.
