Latest news with #non-USMCA-compliant
Yahoo
3 days ago
- Automotive
- Yahoo
BNP Paribas Exane dubs Goodyear "tariff winner," shares surge
-- Shares of Goodyear Tire & Rubber Co (NASDAQ:GT) soared 10.7% on Monday following an upgrade by BNP Paribas (OTC:BNPQY) Exane, which dubbed the company a "true tariff winner" and heightened the price target. Analyst James Picariello elevated the stock to Outperform from Neutral, highlighting Goodyear's estimated 10.5 percentage points cost advantage in the U.S. due to tariffs and its potential for price/mix-led earnings growth. Picariello's report indicated that Goodyear's cost advantage stems from the current Section 232 auto tariffs, which levy a 25% duty rate on about 55% of all U.S. tires sold that are non-USMCA-compliant. As Goodyear is the largest tire producer in North America and only 12% of its U.S. sales are subject to these tariffs, the company enjoys a significant cost benefit. The analyst expressed confidence in Goodyear's ability to leverage this advantage for earnings upside, emphasizing the industry's need to price for tariffs. The report also noted Goodyear's progress in narrowing its margin gap compared to peers and reducing net leverage, which is expected to reach healthy levels by next year. The success of the 'Goodyear Forward' cost savings initiative, which is on track to achieve more than $1.5 billion by the first half of 2026, and the company's effective divestitures are contributing to this positive outlook. In light of these developments, BNP Paribas Exane has raised its estimates for Goodyear's EBIT and EPS for 2026-2027, with the new price target set at $15, up from the previous $11. This valuation is based on an unchanged multiple of approximately 4.4 times the estimated 2026 EV/EBITDA, compared to peers at 4.9 times, reflecting Goodyear's net leverage and profitability. The upgrade and raised price target reflect a bullish sentiment on Goodyear's strategic positioning and its ability to capitalize on market conditions, which appears to resonate with investors as evidenced by the stock's significant rise in the trading session. Related articles BNP Paribas Exane dubs Goodyear "tariff winner," shares surge FTSE 100 today: Index edges lower, U.S.-China talks in focus; Alphawave soars Wolfe Research downgrades Equinix on valuation concerns after strong rally 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
Yahoo
31-05-2025
- Business
- Yahoo
Tariffs Blocked By Court, But Goldman Sachs Says Trump Could Reimpose Them 'Within Days'
The Court of International Trade blocked a large portion of President Donald Trump's latest tariff policies, but according to Goldman Sachs economist Alec Phillips, the White House has a clear and swift path to restoring most of them—potentially within days. In a note shared Thursday, Phillips wrote that the Court's ruling represents a legal setback for the administration, but not necessarily a policy one. The court struck down 6.7 percentage points of tariffs imposed this year under the International Emergency Economic Powers Act (IEEPA), declaring the legal foundation unconstitutional. Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — The blocked tariffs include the 10% across-the-board duty, a 20% tariff on Chinese imports, and a 25% tariff on non-USMCA-compliant goods from Canada and Mexico. Together, they were projected to generate close to $200 billion annually. Stocks positively reacted to the news. The S&P 500 – as tracked by the SPDR S&P 500 ETF Trust (NYSE:SPY) – rose 0.6% on Thursday, and is on track to notch its strongest month of gains since November 2023. The Court of International Trade has given the administration 10 days to stop collecting the duties, but Phillips anticipates the Trump administration responding quickly. "We would expect the White House to announce a similar across-the-board tariff using Sec. 122," Phillips said. That part of the trade law lets the president impose up to 15% tariffs for 150 days without needing Congress. It's designed to address currency issues or trade imbalances and is much easier to activate than other options. 'The administration could theoretically replace the current 10% tariff with a Sec. 122-based tariff within days if deemed necessary,' Phillips added. Phillips also said the White House could start new investigations under another trade tool—Section 301—which would allow even steeper and longer-lasting tariffs. That path takes longer, but it could open the door to targeting major trade partners like China also believes the ruling could pivot the administration toward sector-specific tariffs, which remain on firm legal ground under Section 232, the authority Trump previously used to target steel, aluminum and autos. "Uncertainty regarding the IEEPA-based tariffs could lead the White House to put more emphasis on sectoral tariffs, where there is much less legal uncertainty," Phillips said. That means more duties could soon be imposed on goods like semiconductors, electronics, and pharmaceuticals—sectors in which Trump's trade team has already shown interest. Those actions fall under Section 232, which remains untouched by the court's ruling and could add another 4.9 percentage points to U.S. tariff rates. While importers may be spared future tariffs, duties already paid will not be refunded. Despite the magnitude of potential lost revenue, Goldman Sachs doesn't expect a material impact on the fiscal debate in Congress. "Tariff revenue was never counted toward offsetting the cost of the package," he said. Still, the blocked tariffs were set to generate nearly as much revenue as the new fiscal package will add to the deficit in its first year—roughly $200 billion. 'We expect the Trump administration will find other ways to impose tariffs, so we still expect most of this revenue to materialize.' Read Next: Hasbro, MGM, and Skechers trust this AI marketing firm — Invest before it's too late. Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Many are rushing to grab 4,000 of its pre-IPO shares for just $0.30/share! Photo: Shutterstock Send To MSN: Send to MSN UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? This article Tariffs Blocked By Court, But Goldman Sachs Says Trump Could Reimpose Them 'Within Days' originally appeared on 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
New York Post
27-05-2025
- Business
- New York Post
Trump claims Canada ‘considering' becoming 51st US state in exchange for Golden Dome protection
WASHINGTON — President Trump claimed Tuesday that Canada is 'considering' becoming the 51st state in exchange for being included within his 'Golden Dome' missile defense program. Trump made the claim hours after King Charles III gave a thinly veiled rebuke of the US president's attempt to annex Canada in a speech to the Ottawa parliament. 'I told Canada, which very much wants to be part of our fabulous Golden Dome System, that it will cost $61 Billion Dollars if they remain a separate, but unequal, Nation, but will cost ZERO DOLLARS if they become our cherished 51st State,' Trump, 78, wrote on Truth Social. Advertisement President Trump announces he has selected the path forward for his ambitious Golden Dome missile defense shield, in the Oval Office of the White House in Washington, DC, on Tuesday, May 20, 2025. Chris Kleponis – Pool via CNP / MEGA An illustration released by the Defense Intelligence Agency of the Golden Dome. DIA / SWNS 'They are considering the offer!' Advertisement Trump began tauntingly referring to Canada as the potential 51st state last year — also referring to then-Prime Minister Justin Trudeau as 'governor' — and this year slapped a 25% tariff on non-USMCA-compliant imports, as well as 25% levies on Canadian steel, aluminum and cars. The president has had better relations with Trudeau's successor Mark Carney, but insisted while hosting him in the Oval Office on May 3 that he hasn't given up on his expansionist idea. 'I say, 'Never say never,'' Trump told Carney. 'I've had many, many things that were not doable and ended up being doable.' This is a breaking story. Please check back for updates.
Business Insider
08-05-2025
- Business
- Business Insider
Here's where Trump's trade talks stand
President Donald Trump is running out of time to cut trade deals before the 90-day pause on his so-called reciprocal tariffs could come back into effect. Trump said on May 6 that he's not in a rush to sign a deal. In previous weeks, the president had said that trade deals could be announced soon, only for nothing to happen. "Everyone says, 'When, when, when are you going to sign deals?' We don't have to sign deals. We could sign 25 deals right now, Howard, if we wanted," Trump said on Tuesday in the Oval Office, motioning to Commerce Secretary Howard Lutnick. "We don't have to sign deals. They have to sign deals with us. They want a piece of our market. We don't want a piece of their market, we don't care about their market." Wall Street continues to hang on every word. There's even evidence that traders grow more nervous when Trump's more protectionist advisors are the news. Here's what we know about where discussions stand for major US partners. China The US and China can't agree on who initiated discussions, but it is significant progress that the world's two largest economies are talking. Treasury Secretary Scott Bessent has said that a deal with China is more complex, so the Trump administration views it as separate from discussions with roughly 17 other nations. Beijing has publicly boasted that it can endure a protracted trade fight. Trump has previously said that discussions had occurred, but Beijing denied this. A breakthrough could be coming. On May 6, Bessent said that he and US Trade Representative Jamieson Greer will travel to Switzerland for face-to-face talks with He Lifeng, China's top economic official. Beijing said that the Swiss government invited He. The talks will occur in the same city where the World Trade Organization is headquartered. Trump has long complained about China's 2001 admission to the WTO. Canada Trump met with the newly elected Canadian Prime Minister Mark Carney on May 6 in the Oval Office. Carney told reporters that Canadian officials and the two leaders will follow up on trade discussions from the Oval Office meeting "in the coming weeks." During a public portion of their meeting, Trump and Carney both said that there need to be changes made to the US-Mexico-Canada agreement, Trump's first-term rewrite of the North American Free Trade Agreement. In the meantime, the US continues to impose a 25% tariff on non-USMCA-compliant Canadian goods and a 10% tariff on energy imported from Canada. Additional US tariffs on automobiles, steel, and aluminum also apply to Canadian goods. Canada retaliated by imposing a 25% tariff on US goods, including steel, aluminum, and agricultural goods. India Vice President JD Vance said on May 1 that a US-India trade deal would "be among the first deals" the administration will reach. "Pretty soon," Vance told Fox News anchor Bret Baier. Vance traveled to India for a four-day trip in April, spending significant time with Indian Prime Minister Narendra Modi. Trump imposed a 27% tariff on Indian goods as part of his "Liberation Day" announcement. His 90-day pause on those tariffs ends on July 9. As a large purchaser of Venezuelan oil, India could also face additional US tariffs. Vietnam Vietnam's top trade negotiator Nguyen Hong Dien on May 7 urged his country's businesses to be "proactive" in doing more business with the US. Greer, according to a Bloomberg News report, told Dien during a March meeting in Washington that Vietnam needed to do more to lower the US trade deficit. The US deficit was $123.5 billion in 2024, an 18% increase from the previous year. Trump imposed a 46% tariff on Vietnam as part of his "Liberation Day" announcement — it, too, is subject to the 90-day pause. European Union European Trade Commissioner Maros Sefcovic said on May 6 that the European Union will release more details about potential countermeasures should talks with Trump fail. "Negotiations clearly come first but not at any cost," Sefcovic told reporters, per NBC News. In April, Italian Prime Minister Giorgia Meloni became the first European leader to visit Washington after Trump roiled global markets with his "Liberation Day" tariffs. At the time, both she and Trump spoke positively of a potential deal. Japan Trump said on April 30 that he had "potential deals" with Japan, India, and South Korea. Ryosei Akazawa, Japan's chief negotiator, told reporters a few days later that he and his US counterparts had "concrete discussions." "There are still many issues that need to be addressed and resolved before a final agreement can be reached," Akazawa said. Trump imposed a 24% tariff on Japanese goods before announcing his 90-day pause. South Korea South Korea sent representatives to the US early on, but it's unlikely to be one of the first countries to strike a deal. That's because South Korea is holding snap elections on June 3. A senior government official previously told Reuters that no deal would come before the election.
Yahoo
30-04-2025
- Automotive
- Yahoo
Trump softens tariffs on auto parts for US-assembled cars
This story was originally published on Supply Chain Dive. To receive daily news and insights, subscribe to our free daily Supply Chain Dive newsletter. The U.S. will reimburse domestic car manufacturers for a portion of the costs related to 25% tariffs on auto parts set to begin May 3, according to an amended executive order President Donald Trump signed Tuesday. The updated order stipulates that automakers that assemble their vehicles in the U.S. can apply to offset up to 3.75% of their tariff costs related to auto imports for one year, retroactive to April 3. The available offset rate will drop to 2.5% for the next 12-month period and then be removed. The 3.75% rate was calculated based on the application of the soon-to-be implemented 25% auto parts tariff to vehicles made with 85% U.S. or United States-Mexico-Canada Agreement content, per the amended order. In such an example, the automaker would not pay any tariffs on auto part imports for the next year. As part of the amended order, the Commerce Department has 30 days to establish a process for automakers to provide the necessary documentation to receive the cost offset. Such information includes domestic production plans, projected tariff costs and importers of record. The new order does not alter previous 25% auto tariffs enacted by the Trump administration, nor does it impact those on steel and aluminum imports and other sectors. However, in a separate proclamation signed Tuesday, the Trump administration further clarified that current tariffs on imports of steel, aluminum, cars and non-USMCA-compliant goods will not stack on top of duties on auto parts. Additionally, cars and auto parts compliant with the USMCA are still not subject to 25% tariffs, as the U.S. is establishing a process to tax only non-U.S. content of those parts. The White House said it would have such a process in place no later than May 3 in a previous proclamation, but the administration has yet to provide an update. Meanwhile, Canada began allowing domestic manufacturers to import a limited number of passenger vehicles and light trucks assembled in the U.S. duty free earlier this month. Automakers and industry groups have called for leniency from Trump's barrage of tariffs over the last few months, specifically those targeting cars and parts. "Automakers would welcome any exemption, but the volatility continues with the trade policy uncertainty,' said Lenny LaRocca, U.S. auto industry leader at KPMG, in an email to Supply Chain Dive. 'As we have seen, tariffs can be proposed and revised on short notice. That also doesn't change the broader business strategy questions facing automakers.' A report from the Center for Automotive Research published prior to Tuesday's order said tariffs targeting the auto industry would increase costs for all domestic automakers by $107.7 billion in 2025. The report, commissioned by the American Automotive Policy Council, a trade association representing companies like General Motors, Ford Motor Co. and Stellantis, said those three automakers alone would take a combined $41.9 billion hit. The report also warned its projections could be conservative, given the unknown impacts on cross-border trade and the global nature of the automotive supply chain. Recommended Reading US auto tariffs begin, part tariffs to start May 3 Sign in to access your portfolio
