Latest news with #importcosts
Auto Express
22-07-2025
- Automotive
- Auto Express
This car giant is £260m down thanks to Trump and his tariffs
President Trump's tariffs are starting to bite across the car industry, if the latest news from the owner of Citroen, Peugeot, Vauxhall, Fiat and Jeep is anything to go by. The multi-brand Stellantis group says that it's in a 300m Euro (£260m) hole as a result of extra costs associated with importing cars to the US market. Advertisement - Article continues below The fall in revenue resulting from the tariffs contributed to a 2.3 billion Euro loss in the first half of 2025. But given that the measures were only imposed part of the way through that reporting period, worse could be still to come. "We'll see significantly more in the second half unless things change," said Doug Ostermann, Stellantis Chief Financial Officer. 'Given the current outlook, I would expect to see that figure probably double in the second half, or more.' Stellantis revealed that shipments to North America declined by 25 per cent in the three months to June compared with the same period last year. The likes of Peugeot, Citroen and Vauxhall don't have a presence in the US market, but Stellantis also owns Jeep, Chrysler, Dodge and Ram, as well as Alfa Romeo and Maserati, which do. US customers might end up paying more for cars but you don't have to. Check out the latest deals on the Auto Express Find a Car service. The giant Stellantis group does manufacture cars in the US but has a total of 52 plants in other countries around the world - including in Europe, Canada and South America - that import vehicles to the US market. The global nature of the car industry means that there will be other brands in a similar boat, both those importing completed vehicles and those sending components to feed US factories - although Trump did take measures to lower tariffs on these components in April. The UK arrived at a trade deal with the US government in May that lowered the 25 per cent tariffs on complete cars built here to 10 per cent, but this is still significantly higher than the previous tariff of 2.5 per cent. There could be further problems for Stellantis if President Trump follows through on his threat to impose 50 per cent tariffs on Brazil. The group has a major manufacturing operation there producing Fiat and Jeep cars. Come and join our WhatsApp channel for the latest car news and reviews...
Yahoo
03-07-2025
- Business
- Yahoo
In US capital, Trump tariffs bite into restaurant profits
Brazilian coffee beans, French champagne and Chinese teas -- drinks are a profit driver for US restaurants, but higher import costs have eaten into margins and fed into consumer prices in the three months since President Donald Trump unveiled sweeping global tariffs. A stone's throw from the White House, a restaurant group that takes pride in dishing up fresh local meat and produce has found itself having to raise prices on its menus. "The reality is, we have to pass along some of those to our guests," said John Filkins, corporate beverage director at Clyde's Restaurant Group. "Could be anywhere from 50 cents to $1 on certain wines by the glass, or spirits, or some of our food menu items," he told AFP. "We've seen huge increases in coffee and in teas, and we're beginning to see some of those increases in food, as well as paper products coming on through as well," he added. Clyde's, which opened in the 1960s in Washington, has more than a dozen restaurants in and around the US capital. One of them is The Hamilton in downtown Washington, where drinks prices have ticked up. While management has tried to limit increases, Filkins said this has been tough. Businesses have encountered snarled supply chains and higher costs since Trump imposed fresh tariffs after returning to the presidency in January. In April, the president unleashed his widest-ranging salvo, a 10 percent duty on imports from most trading partners. This is expected to surge to higher levels for dozens of economies. - 'Low cash, low margin' - Leaders like Filkins are eyeing a deadline next Wednesday when the steeper tariffs are due to kick in. These are customized to each partner, with the level for European Union products rising to 20 percent and that for Japanese goods jumping to 24 percent unless they strike deals to avert or lower the rates. Filkins warned that the longer tariffs remain in place, the fewer small, independent distributors, importers and restaurants there might be. "The hope is we don't see tariffs to the extent where we're seeing them any longer," he added. "Restaurants are, at the end of the day, typically low cash, low margin," Filkins said. A typical outfit probably runs "in the single digits in terms of profit margin," he noted. This means that cutting out 10 percent to 15 percent of their profit for wine by the glass, for example, could prove a significant blow. - 20-30% hikes - Clyde's sources coffee beans from places like Brazil and Indonesia for its blends, while getting teas from India and China. "Over the course of the last probably six months, we've seen about a 20 to 30 percent increase of that cost," Filkins said. This is partly because suppliers and distributors are not only paying the 10 percent tariff but forking out more due to exchange rates. Imports from China face a 30 percent tariff currently even though Washington and Beijing have temporarily lowered tit-for-tat levies on each other's goods. Without a deal, products from Indonesia face a 32 percent duty come Wednesday, and the rate for India spikes to 26 percent. "For liquor, beer and wine, most of the wine we import comes from the EU," Filkins said, noting the impact is biggest on products from France, Italy, Spain and Portugal so far. Yet, his company is trying to hold off passing on additional costs entirely. "Consumers are not comfortable spending more in the current climate," said Filkins. The world's biggest economy has fared well after the Covid-19 pandemic, helped by a solid labor market that allowed consumers to keep spending. But economic growth has slowed alongside hiring. Economists are monitoring to see if tariffs feed more broadly into inflation this summer, and households become more selective with purchases. With Trump's approach of announcing, adjusting and halting tariffs roiling financial markets and fueling uncertainty -- forcing businesses to put investments on hold -- Filkins hopes for an easing of levies. "It's hard for all of us to forecast what's going to happen in the next eight days," said Filkins. "We can't base all of our decisions on speculation." bys/ksb Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CTV News
26-06-2025
- Business
- CTV News
Nike says U.S. tariffs will add US$1 billion to costs, plans to reduce China production
In this file photo dated Tuesday, Sept. 4, 2018, a Nike company logo is displayed outside a Nike store in Charlotte, N.C. (AP Photo/Chuck Burton, FILE) Nike expects U.S. tariffs on imports to add around US$1 billion to its costs, the sportswear giant said on Thursday, detailing how it aims to reduce its reliance on production in China and mitigate the impact. U.S. President Donald Trump's sweeping tariffs on key trading partners have forced many retailers, including Hoka owner Deckers Brands to withdraw their forecasts as they brace for a slowdown in non-essential spending from consumers. China, subject to the biggest tariff increases imposed by Trump, accounts for about 16 per cent of the shoes Nike imports into the United States, chief financial officer Matthew Friend said. But the company aims to cut the figure to a 'high single-digit percentage range' by end-May 2026 by shifting production to other countries. 'We are partnering with our suppliers and our retail partners to mitigate this structural cost increase in order to minimize the overall impact to the consumer,' Friend added in a call with analysts. Nike has also already announced price increases to partly mitigate the impact of tariffs. Nike's shares gained 11 per cent in extended trading after the company forecast first-quarter revenue to fall in the mid-single digits, slightly better than estimates of a 7.3 per cent drop. The company also reported a smaller-than-expected drop in fourth-quarter revenue and beat profit estimates as CEO Elliott Hill's strategy to focus product innovation and marketing around sports begins to pay off. Having lost share in the fast-growing running market, Nike has scaled back production of sneakers such as the Air Force 1 and invested heavily in running shoes such as Pegasus and Vomero. Friend said the running category returned to growth in the fourth quarter. Under Hill, who joined in October last year, Nike is investing more into sport-focused marketing to regain its edge as a sports brand. On Thursday, it hosted an attempt by sponsored athlete Faith Kipyegon to run a mile in under four minutes. Paced by other star athletes in the glitzy, live-streamed event in a Paris stadium, Kipyegon fell short of the goal but set a new unofficial record. Nike's fourth-quarter sales fell 12 per cent to US$11.10 billion, compared with analysts' expectation of a 14.9 per cent drop to US$10.72 billion, according to data compiled by LSEG. China continued to be a pain point, with executives saying a turnaround in the country will take time as Nike contends with tougher economic conditions and competition. The company's inventory was flat as of May 31, compared with a year ago, at US$7.5 billion. 'Nike's inventories are still too high considering the sales declines. It was a tough quarter, but this was widely anticipated,' said David Swartz, analyst at Morningstar Research. (Reporting by Juveria Tabassum in Bengaluru and Helen Reid; Editing by Shinjini Ganguli)
CNA
11-06-2025
- Business
- CNA
Japan wholesale inflation slows, taking pressure off BOJ
TOKYO :Japan's annual wholesale inflation slowed in May on falling import costs for raw materials, data showed on Wednesday, taking some pressure off the central bank to raise interest rates. But the rise in wholesale prices for food and beverages gathered pace in May in a sign global uncertainties and soft consumption are not discouraging firms to pass on higher costs. The corporate goods price index (CGPI), which measures the price companies charge each other for their goods and services, rose 3.2 per cent in May from a year earlier, data showed, falling short of a median market forecast for a 3.5 per cent gain. It followed a revised 4.1 per cent increase in April and marked the slowest year-on-year rise since a 3.1 per cent gain in September. "As wholesale inflation slows, consumer prices will also come under downward pressure with a lag," said Masato Koike, senior economist at Sompo Institute Plus. "The BOJ may have lost the opportunity to raise interest rates because inflation will have slowed significantly by the time the fog hanging over Japan's tariff talks (with the U.S.) clears," he said. Prices of steel goods fell 4.8 per cent and those of chemical products were down 3.1 per cent, while non-ferrous metals products saw prices slide 2.1 per cent, the data showed. The yen-based import price index fell 10.3 per cent in May from a year earlier after a 7.3 per cent drop in April, indicating the currency's rebound was pushing down raw material import costs. By contrast, prices of food and beverages rose 4.2 per cent in May, accelerating from a 4.0 per cent increase in April in a sign of simmering inflationary pressure, the data showed. Japan is struggling to reach a deal with Washington in tariff negotiations, clouding the outlook for its economy, which is heavily reliant on automobile shipments to the U.S. The uncertainty over U.S. trade policy forced the BOJ to cut its growth forecasts on May 1, suggesting the timing of its next rate hike may be delayed despite steadily rising inflation. Japan's core consumer inflation hit 3.5 per cent in April, marking the fastest annual pace in more than two years and exceeding the BOJ's 2 per cent target for more than three years, due largely to a surge in food costs. While the BOJ expects food inflation to moderate later this year, it has signaled its readiness to raise rates again once the economy resumes a recovery on solid wage gains. The BOJ ended a decade-long stimulus programme last year and in January raised interest rates to 0.5 per cent on the view Japan was on the cusp of durably hitting its 2 per cent inflation target. A Reuters poll, taken on May 7-13, showed most economists expect the BOJ to hold rates steady through September with a small majority forecasting a hike by year-end.
CNA
11-06-2025
- Business
- CNA
Japan wholesale inflation slows in May
TOKYO :Japan's wholesale prices rose 3.2 per cent in May from a year earlier, data showed on Wednesday, slowing from April in a sign falling import costs for raw materials were easing price pressures for companies. The rise in the corporate goods price index (CGPI), which measures the price companies charge each other for their goods and services, compared with a median market forecast for a 3.5 per cent annual increase and follows a revised 4.1 per cent increase in April. The yen-based import price index fell 10.3 per cent in May from a year earlier after a revised 7.3 per cent drop in April, the data showed, indicating the currency's rebound was pushing down the cost of raw material imports.
