Latest news with #USMCA-compliant
Yahoo
29-05-2025
- Business
- Yahoo
Here are the Trump tariffs that were struck down — then reinstated, for now
Update: Just after 3 p.m. Thursday, the United States Court of Appeals for the Federal Circuit issued a brief order granting the Trump administration's request to pause an earlier ruling that voided several of the president's tariffs. As a result, those tariffs have been reinstated for now. The businesses challenging the tariffs have until June 5 to respond, while the administration has until June 9 to file any reply, the appeals court said. Earlier: On Wednesday, a federal trade court voided some of the tariffs the Trump administration has imposed as part of its effort to shore up the trade deficit and boost manufacturing. Less than 24 hours later, a second court, the District Court of Washington, D.C., issued a similar ruling just after noon on Thursday. The rulings have set the stage for a contentious court fight, as the White House immediately filed an appeal to the initial decision. The Trump administration may ask the U.S. Supreme Court as soon as Friday to pause the rulings, CNBC reported. In the meantime, under the terms of the initial decision, the U.S. has until June 9 to direct customs officials to cease collections of the import taxes the president imposed under an emergency-powers statute. These include the "fentanyl tariffs," Trump imposed at the outset of his second term, the "reciprocal tariffs" he announced on April 9 (which so far have extended only to China), and the de minimis tariffs on low-cost imports from China. The trade court also held that the U.S. must refund the tariffs it has collected under the emergency powers statute. Analysts with Nomura Holdings financial group said that even if Trump ultimately replicates those tariffs using other authorizations, that refund obligation would remain in place. The rulings inject further uncertainty into the markets and the economy. In the meantime, assuming the rulings are allowed to fully take effect, here are the tariffs that would, and would not, be affected. 10% universal baseline tariff 20% duties on Chinese goods in response to its alleged failures to combat fentanyl trafficking 10% "reciprocal" duty targeting all Chinese goods De minimis tariffs on Chinese goods valued at less than $800 25% on auto imports (excluding non-U.S. content of USMCA-compliant autos) 25% on auto parts imports (USMCA-compliant parts exempt) 25% on all steel, aluminum, and aluminum articles This article was originally published on
Miami Herald
17-05-2025
- Automotive
- Miami Herald
‘We need USMCA': Auto suppliers face distress from Trump tariffs
SOUTHFIELD, Michigan - Working to have the U.S. government honor conditions of the United States-Mexico-Canada trade agreement is a top priority for the vehicle suppliers' lobbying trade group, the association's leaders said Friday. "For the U.S. to be globally competitive, we need USMCA," Paul McCarthy, president-elect of MEMA and president of its aftermarket suppliers group, said before the Automotive Press Association. Supplier outlooks are down among MEMA's more than 1,000 members. Three quarters are expecting worse financial performances in 2025 than they had anticipated coming into 2025. With their median break-even point expected to be North American production of 14.5 million vehicles this year, up from 14 million because of tariffs, the industry is in a precarious position: Data firm S&P Global Mobility was predicting production at 13.9 million to 14.3 million ahead of President Donald Trump offering some relief measures late last month. "This is an industry under pressure, and our strategies, our investments are on hold, and that's not a good thing for what is the largest manufacturing sector in the U.S.," McCarthy said, noting suppliers contribute 2.5% of U.S. economic activity. Auto suppliers still are navigating a bunch of tariffs: President Donald Trump has instituted import taxes of 25% on steel and aluminum, 25% on certain auto parts and at least 10% on imports from most countries around the world with some of the heaviest on Canada and Mexico, where vehicle supply chains even for U.S.-produced vehicles are tightly woven. About 71% of imported materials and components used by MEMA's members are USMCA-compliant, and MEMA is providing resources to help more become compliant to avoid 25% tariffs. "We've all invested for the last 20 or 30 years into the North America supply chain," said Collin Shaw, president of MEMA's original equipment suppliers group, "and every country in USMCA offers something unique and has something to bring to the table to ensure that, from a competitiveness standpoint, we can compete with the rest of the world." He emphasized suppliers have added 61,000 U.S. manufacturing and salaried jobs in the years since Trump signed USMCA in 2020. "That is aligned with the administration's goals," McCarthy said, "that a strong U.S. requires a strong region to be competitive again." Although there are signs there should be strong auto demand as the average age of vehicles on the road increases, Shaw said, more than half of MEMA members report they are less competitive because of the tariff situation, and 53% are worried about sub-tier supplier distress as tariffs raise costs and are expected to increase vehicle prices. "New orders are down, and costs remain elevated," said Mike Jackson, MEMA's executive director of research and insights, "and this is a very tough situation for the supplier industry." Of MEMA members, 7% said they have implemented furloughs, 5% have instituted temporary wage reductions, 43% have delayed capital expenditure spending, 38% have restricted travel and 15% have taken other actions because of tariffs. "They can't see the complete picture," Jackson said, resulting in deferred spending. Some suppliers, though, say they are moving forward with investments. Paul Thomas, president of major auto supplier Robert Bosch GmbH in North America and of Bosch Mobility America, this week said the German manufacturer isn't holding off investing and is moving forward with $6 billion in announced U.S. investments since 2023. He, however, also emphasized the need for stability in trade policy. "I'm really focused on the future and the profitable growth opportunities for Bosch here in North America and specifically in the United States," Thomas said. "To achieve that growth, we are investing." Honoring USMCA and making tweaks as needed would help to offer the industry the stability it needs to make long-term decisions and hopefully provide opportunities to level the playing field for all suppliers looking to invest in the United States, Shaw said. He added that it's also risky to have production consolidated in one place: "We have to have that diversified supply chain so that we're not at risk, whether it's a supply chain shock like we saw with tsunamis, or geopolitical tensions like we're seeing today. We have to have a diversified supply chain." MEMA also is urging certainty on regulations of greenhouse tailpipe emissions. Trump has ordered a reevaluation of rules finalized by the Biden administration and is seeking to remove California's waiver allowing it to have stricter standards that 13 other states and Washington, D.C., have adopted. Delays on launches, production volume changes and less-than-expected demand for EVs have created challenges for suppliers too. MEMA also urges permitting reforms to increase the speed of U.S. expansion, retaining the Inflation Reduction Act that former President Joe Biden signed in 2022 that granted incentives to manufacturers of U.S. batteries, a "pro-business" tax environment, incentives for research and development and support to increase skilled tooling talent in the country, McCarthy said. He said the ability to deduct R&D spending proposed in the Ways and Means Committee's budget is a good step forward. "But that just brings us up to the rest of the world," McCarthy said. "It doesn't give us any advantage." Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers.
Auto Blog
13-05-2025
- Automotive
- Auto Blog
U.S. Makes Revised Deal Slashing Import Tariffs for U.K. Automakers
Trump cuts U.K. automakers some slack The U.S. and the U.K. have confirmed a limited trade deal to reduce tariffs on U.K. vehicle imports from 27.5% to 10%. Discounted levies on auto part imports are not part of the agreement, and the decreased tariffs have a limit of 100,000 cars annually. Jaguar Land Rover, which sends the most vehicles to the U.S. out of any automaker, sold about 95,000 cars last year in the U.S., according to The New York Times. The U.K. as a whole exported around 102,000 total cars to the U.S. in 2024, according to Automotive Logistics. In April, Jaguar Land Rover announced it was pausing shipments to the U.S. because of tariff impacts, but resumed vehicle exports earlier this week. The Trump administration is also cutting U.K. steel and aluminum import tariffs from 25% to 0% with quotas, which have yet to be announced, and will allow Rolls-Royce to export engines and plane parts into the U.S. tariff-free. In return, the U.K. slashed its 19% tariff on imported ethanol from the U.S. to 0%. Since 2021, the U.K.'s standard unleaded fuel, E10 petrol, has contained up to 10% ethanol. Previous Pause Next Unmute 0:00 / 0:10 Audi A5 replaces A4: So, what's changed? Watch More President Trump listens as Britain's Prime Minister Keir Starmer speaks to him on the phone — Source: Getty 'Big three' U.S. automakers fume over U.K. deal When finalized, the tariff reduction deal will be the U.S.'s first of its kind with another nation, and some domestic automakers aren't happy about it. 'The U.S. automotive industry is highly integrated with Canada and Mexico; the same is not true for the U.S. and the U.K. We are disappointed that the administration prioritized the U.K. ahead of our North American partners,' said American Automotive Policy Council President Matt Blunt. The council represents the U.S.' 'big three' automakers; Ford, Stellantis, and General Motors (GM). Current tariff policy states that USMCA-compliant (United States-Mexico-Canada Agreement) auto parts are temporarily exempt from tariffs, but USMCA-compliant vehicles imported into the U.S. from Canada and Mexico face tariffs on their non-U.S. content. Matt Blunt added: 'Under this deal, it will now be cheaper to import a U.K. vehicle with very little U.S. content than a USMCA-compliant vehicle from Mexico or Canada that is half American parts.' Cars are the U.K.'s largest export to the U.S., worth around £9 billion ($11.9 billion) in 2024, according to the BBC. 'The car industry is vital to the U.K.'s economic prosperity, sustaining 250,000 jobs. We warmly welcome this deal which secures greater certainty for our sector and the communities it supports,' Jaguar Land Rover CEO Adrian Mardell said according to Ars Technica. Final thoughts American Automotive Policy Council President Matt Blunt is unsurprisingly dissatisfied with the President's prioritization of foreign automakers over domestic ones. A portion of Blunt's release read: 'We hope this preferential access for U.K. vehicles over North American ones does not set a precedent for future negotiations with Asian and European competitors.' Still, the U.K.-U.S. deal is more symbolic, as it will likely have a limited impact. Most U.K. automakers, such as Jaguar Land Rover, operate at the higher end of the pricing spectrum, restricting their overall U.S. market presence despite strong sales in the luxury segment. Autoblog Newsletter Autoblog brings you car news; expert reviews and exciting pictures and video. Research and compare vehicles, too. Sign up or sign in with Google Facebook Microsoft Apple By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime.
Miami Herald
10-05-2025
- Automotive
- Miami Herald
U.S. Makes Revised Deal Slashing Import Tariffs for U.K. Automakers
The U.S. and the U.K. have confirmed a limited trade deal to reduce tariffs on U.K. vehicle imports from 27.5% to 10%. Discounted levies on auto part imports are not part of the agreement, and the decreased tariffs have a limit of 100,000 cars annually. Jaguar Land Rover, which sends the most vehicles to the U.S. out of any automaker, sold about 95,000 cars last year in the U.S., according to The New York Times. The U.K. as a whole exported around 102,000 total cars to the U.S. in 2024, according to Automotive Logistics. In April, Jaguar Land Rover announced it was pausing shipments to the U.S. because of tariff impacts, but resumed vehicle exports earlier this week. The Trump administration is also cutting U.K. steel and aluminum import tariffs from 25% to 0% with quotas, which have yet to be announced, and will allow Rolls-Royce to export engines and plane parts into the U.S. tariff-free. In return, the U.K. slashed its 19% tariff on imported ethanol from the U.S. to 0%. Since 2021, the U.K.'s standard unleaded fuel, E10 petrol, has contained up to 10% ethanol. When finalized, the tariff reduction deal will be the U.S.'s first of its kind with another nation, and some domestic automakers aren't happy about it. "The U.S. automotive industry is highly integrated with Canada and Mexico; the same is not true for the U.S. and the U.K. We are disappointed that the administration prioritized the U.K. ahead of our North American partners," said American Automotive Policy Council President Matt Blunt. The council represents the U.S.' "big three" automakers; Ford, Stellantis, and General Motors (GM). Current tariff policy states that USMCA-compliant (United States-Mexico-Canada Agreement) auto parts are temporarily exempt from tariffs, but USMCA-compliant vehicles imported into the U.S. from Canada and Mexico face tariffs on their non-U.S. content. Matt Blunt added: "Under this deal, it will now be cheaper to import a U.K. vehicle with very little U.S. content than a USMCA-compliant vehicle from Mexico or Canada that is half American parts." Cars are the U.K.'s largest export to the U.S., worth around £9 billion ($11.9 billion) in 2024, according to the BBC. "The car industry is vital to the U.K.'s economic prosperity, sustaining 250,000 jobs. We warmly welcome this deal which secures greater certainty for our sector and the communities it supports," Jaguar Land Rover CEO Adrian Mardell said according to Ars Technica. American Automotive Policy Council President Matt Blunt is unsurprisingly dissatisfied with the President's prioritization of foreign automakers over domestic ones. A portion of Blunt's release read: "We hope this preferential access for U.K. vehicles over North American ones does not set a precedent for future negotiations with Asian and European competitors." Still, the U.K.-U.S. deal is more symbolic, as it will likely have a limited impact. Most U.K. automakers, such as Jaguar Land Rover, operate at the higher end of the pricing spectrum, restricting their overall U.S. market presence despite strong sales in the luxury segment. Copyright 2025 The Arena Group, Inc. All Rights Reserved.
Miami Herald
08-05-2025
- Automotive
- Miami Herald
Ford announces desperate move to battle tariffs
President Donald Trump has stuck to his guns regarding his tariffs and the burgeoning trade war with China. His position continues to be that the long-term benefit of the tariffs far outweighs the short-term pain U.S. consumers and producers will feel from higher prices. Don't miss the move: Subscribe to TheStreet's free daily newsletter But that doesn't mean Trump has been completely intractable about tariffs. He has issued carveouts for the auto and tech industries, which happen to be sectors that spend millions of dollars lobbying the White House and Capitol Hill. Trump was asked about this incongruency during a recent interview with NBC News. The interviewer pointed out that small businesses do not have a seat at the table to negotiate the same considerations that conglomerates like Apple and Ford have received. Related: Ford makes a drastic decision in the face of tariff overhang When asked whether small businesses will also receive some tariff relief, Trump replied, "Why do you always mention a couple of little businesses. What about the car business? They're going to make a fortune because of the tariffs." In March, the auto industry became the first major industry to get some relief from the tariffs when the White House announced an exemption for vehicles covered by the United States-Mexico-Canada Agreement (USMCA). The U.S. placed a 25% tariff on imported autos and auto parts, but USMCA-compliant products are exempt, saving domestic automakers billions in the process. However, the fallout from the tariffs is hitting the industry, despite the fortunes Trump promised they'd make. Image source: Hughes/Bloomberg via Getty Images Ford is planning to raise prices on the Mustang Mach-E electric SUV, Maverick pickup truck, and Bronco Sport SUV by as much as $2,000 on some models, according to a notice viewed by Reuters. Those vehicles are made in Mexico, but Ford did not immediately return a request for comment on whether the vehicles are compliant with USMC rules. A Ford spokesperson confirmed that the price increases will be seen on vehicles built after May 2. Those vehicles will start arriving on dealer lots in late June. They also told Reuters that the increase was due to its usual midyear pricing actions, but it was also "combined with some tariffs we are facing. We have not passed on the full cost of tariffs to our customers." On Monday, Ford said it expects to take a $1.5 billion net hit to EBITDA this year from the tariffs, though it also cautioned that it is still too early to fully gauge exactly how much disruption there will be to the global supply chain due to the duties that went into effect. Due to that uncertainty, Ford is also suspending its guidance for the year, following in the footsteps of rival General Motors, which announced that it too was suspending its guidance due to tariffs last Tuesday. Ford had expected EBITDA between $7 billion and $8.5 billion for the year. Ford shares were down 1.6% in afternoon trading at last check Wednesday afternoon. Tariffs were the first topic addressed on Ford's (F) earnings call after the closing bell on Monday, as the world waited to see how the Blue Oval would respond to the automotive industry's new business reality. Ford President and CEO Jim Farley said he supported the White House's long-term vision for the industry. "Ford supports the administration's goal to strengthen the U.S. economy by growing manufacturing, and we also support a level playing field globally for domestic and foreign original equipment manufacturers (OEM)," Farley stated. "We also appreciate the ongoing cooperation we've had with the administration. As the country's largest auto manufacturer, our engagement with Washington is helping U.S. policymakers better understand how the proposed policy changes will impact our industries and, of course, our communities." But the company also said that it would take time for OEMs to shift their production to the U.S. and that balancing all of this, including potential price increases for its customers, will cost Ford money. A lot of money. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
