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    Trump’s Tariffs Turn Porsche’s Headwinds Into a ‘Violent Storm’

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    The storied sports car maker, which was facing challenges from China and slumping demand for electric cars, now has to grapple with tariffs from the Trump administration.This year was already shaping up to be a tough one for Porsche. Chinese customers were losing interest in the luxury sports car, its bet on electric vehicles was failing with drivers long enamored by the rumble of its combustion engines and its stock price hovered near record lows.Then President Trump imposed a 25 percent tariff on all cars imported to the United States starting in April. Last week, he doubled down on that, threatening a 50 percent tariff for all products from the European Union, sending Porsche’s shares tumbling further and E.U. leaders and auto executives scrambling to make a deal.All of Europe’s leading carmakers have been hit by the tariff turbulence, at a time when they are already facing increasing competition from Chinese automakers. But unlike BMW, Mercedes-Benz and Volkswagen, Porsche manufactures its vehicles exclusively in Germany, leaving it more vulnerable to the combined threat of advancements from China’s rivals and tariff increases in the United States.“It is literally a perfect storm,” said Harald Hendrikse, a managing director covering the European auto sector at Citi Research. “You have a triple threat, which is China, an E.V. strategy that was wrong — despite being lauded at the time — and then Trump’s tariffs, which nobody had guessed would be as severe as they are.”That has led Porsche to scale back its forecast for the year, by about 2 billion euros, or $2.2 billion. Its profit margin range is also expected to drop between 6.5 percent and 8.5 percent, from 10 percent to 12 percent.“Our market in China has literally collapsed,” Porsche’s chief executive, Oliver Blume, told shareholders at the company’s annual conference on May 21. “U.S. import tariffs are weighing on our business.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Data Centers’ Hunger for Energy Could Raise All Electric Bills

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      Individuals and small businesses may end up bearing some of the cost of grid upgrades needed for large electricity users, a new report found.Individuals and small business have been paying more for power in recent years, and their electricity rates may climb higher still.That’s because the cost of the power plants, transmission lines and other equipment that utilities need to serve data centers, factories and other large users of electricity is likely to be spread to everybody who uses electricity, according to a new report.The report by Wood MacKenzie, an energy research firm, examined 20 large power users. In almost all of those cases, the firm found, the money that large energy users paid to electric utilities would not be enough to cover the cost of the equipment needed to serve them. The rest of the costs would be borne by other utility customers or the utility itself.The utilities “either need to socialize the cost to other ratepayers or absorb that cost — essentially, their shareholders would take the hit,” said Ben Hertz-Shargel, who is the global head of grid edge research for Wood MacKenzie.This is not a theoretical dilemma for utilities and the state officials who oversee their operations and approve or reject their rates. Electricity demand is expected to grow substantially over the next several decades as technology companies build large data centers for their artificial intelligence businesses. Electricity demand in some parts of the United States is expected to increase as much as 15 percent over just the next four years after several decades of little or no growth.The rapid increase in data centers, which use electricity to power computer servers and keep them cool, has strained many utilities. Demand is also growing because of new factories and the greater use of electric cars and electric heating and cooling.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      A CEO’s Guide to Surviving Trump’s Trade War

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      Randy Carr, whose family business makes embroidered patches, is always on high alert for the competition. But with on-again-off-again tariffs, he’s just trying to keep up with the rules.Randy Carr watched the news on his laptop the way you look at a doctor about to administer a shot — nervously and braced for pain. It was April 2, and President Trump was in the Rose Garden about to unveil new tariffs.An upbeat, slightly jacked 52-year-old, Mr. Carr is the chief executive of World Emblem, a privately held company based in Fort Lauderdale, Fla., that produces about 150 million embroidered patches a year, most of which end up on shirts and hats. He radiates so much energy that even sitting down he appears to be set on vibrate. He’s intense about everything, including his diet, which he described one recent afternoon, karate chopping a tabletop for emphasis.Two hundred grams of protein a day (bam!), lots of vegetables (bam!), low carbs (bam!), no sugar (bam!). He gets up at 5 a.m. to lift weights every morning and runs five miles every afternoon.“It’s about being the best I can be every day, for everybody here,” he said. “I wouldn’t want to compete with this company.”His father started World Emblem in 1990, with two machines in a warehouse in a suburb of Miami. The company’s fortunes were improving by the time it opened a factory in Mexico, in 2005. Today that operation is the size of eight football fields and employs more than 800 people. In a typical week, it produces about 2.5 million emblems.World Emblem’s factory in Aguascalientes covers eight football fields.Fred Ramos for The New York TimesWe are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Trump Administration Looks to Take Steps to Ease Pain From Car Tariffs

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      The planned concessions to give automakers more time to relocate production to the United States would still leave substantial tariffs on imported cars and car parts.The Trump administration said it plans to announce measures as early as Tuesday to ease the impact of tariffs on imported cars and car parts to give automakers more time to relocate production to the United States.Tariffs of 25 percent on imported vehicles and on auto parts will remain in place. But the tariffs will be modified so that they are not “stacked” with other tariffs, for example on steel and aluminum, a White House spokesman said. Automakers will not have to pay tariffs on those metals, widely used in automobiles, on top of the tariffs on cars and parts.In addition, automakers will be reimbursed for some of the cost of tariffs on imported components. The reimbursement will amount to up to 3.75 percent of the value of a new car in the first year, but will be phased out over two years, the spokesman confirmed.A 25 percent tariff on imported cars took effect April 3. On Saturday, the tariffs are set to be extended to include imported parts.“President Trump is building an important partnership with both the domestic automakers and our great American workers,” Howard Lutnick, the commerce secretary, said in a statement. “This deal is a major victory for the president’s trade policy by rewarding companies who manufacture domestically, while providing runway to manufacturers who have expressed their commitment to invest in America and expand their domestic manufacturing.”But even with these changes, there will still be substantial tariffs on imported cars and auto parts, which will raise prices for new and used cars by thousands of dollars and increase the cost of repairs and insurance premiums.The modification to the tariffs was reported earlier by The Wall Street Journal. Mr. Lutnick helped automakers secure a major exemption from tariffs in March and has taken on a role advocating relief for some industries hit by the levies.Automakers welcomed the change. “We believe the president’s leadership is helping level the playing field for companies like G.M. and allowing us to invest even more in the U.S. economy,” Mary T. Barra, the chief executive of General Motors, said in a statement on Monday. “We appreciate the productive conversations with the president and his administration and look forward to continuing to work together.” More

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      Tariffs on China Aren’t Likely to Rescue Battered U.S. P.P.E. Industry

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      The few domestic companies that still make protective gear for health care workers have clamored for federal intervention. But they worry President Trump’s trade war with China won’t help.Few domestic industries have been as devastated by the flood of cheap Chinese imports as manufacturers of face masks, exam gloves and other disposable medical gear that protects health care workers from infectious pathogens.The industry’s demise had calamitous consequences during the Covid pandemic, when Beijing halted exports and American hospital workers found themselves at the mercy of a deadly airborne virus that quickly filled the nation’s emergency rooms and morgues.But as President Trump unveiled his tariff regimen earlier this month, and Beijing retaliated with an 84 percent tax on American imports, the few remaining companies that make protective gear in the United States felt mostly unease.“I’m pretty freaked out,” said Lloyd Armbrust, the chief executive of Armbrust American, a pandemic-era startup that produces N95 respirator masks at a factory in Texas. “On one hand, this is the kind of medicine we need if we really are going to become independent of China. On the other hand, this is not responsible industrial policy.”The United States once dominated the field of personal protective equipment, or P.P.E. The virus-filtering N95 mask and the disposable nitrile glove are American inventions, but China now produces more than 90 percent of the medical gear worn by American health care workers.Despite bipartisan vows to end the nation’s dependency on foreign medical products — and to shore up the dozens of domestic manufacturers that sprung up during the pandemic — federal agencies and state governments have resumed their reliance on inexpensive Chinese imports. Earlier this year, when California purchased millions of N95 masks for those affected by the Los Angeles wildfires, it chose masks made in China.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Tesla’s Falling Profit May Pressure Elon Musk to Return to Day Job

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      The carmaker is expected to report a decline in quarterly earnings after Tesla’s brand suffered because of its chief executive’s role in the Trump administration.Tesla is expected to report on Tuesday that its profits fell in the first three months of the year, which could increase the pressure on Elon Musk, the automaker’s chief executive, to curtail his work for President Trump and spend more time managing the company.Wall Street analysts expect Tesla to say its net profit declined slightly from $1.1 billion in the first quarter of 2024.Tesla sales have been slumping because of intense competition from Chinese carmakers like BYD, a lack of new models and Mr. Musk’s support of far-right causes, which has turned away some liberals and centrists from buying Tesla vehicles.Tesla remains the most valuable automaker in the world as measured by its stock price, but its shares have lost about half their value since mid-December as investors have grown more pessimistic about the company’s prospects and concerned about Mr. Musk’s role in the Trump administration.Tesla has steadily lost market share to Chinese carmakers and more established automakers, like General Motors, Volkswagen and Hyundai, that have been offering a growing selection of electric vehicles.Mr. Musk’s company once hoped to sell 20 million vehicles a year by the end of the decade, twice as many as Toyota. But sales have been sliding after climbing to 1.8 million in 2023. Last year, the company sold 1.7 million cars, and its global sales fell 13 percent in the first quarter of 2025 from a year earlier.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Amazon Sellers Struggle with Trump’s Tariff Plans

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      When President Trump announced tariffs this month on goods from all over the world, Jing and Eddie Levine, who sell party supplies on Amazon, were on a flight home to Chicago after visiting suppliers in Asia.Amazon was the center of their life. They met at a conference for Amazon sellers in 2016 and had their first kiss at another Amazon conference two years later. They moved in together and grew their business, Treasures Gifted. When they married in 2022, they threw an Amazon-themed wedding, with guests assigned Amazon product numbers instead of table numbers.The Levines tried to make sense of the news. The giant poster that Mr. Trump pointed to during a Rose Garden ceremony on April 2 showed that China would be hit with large tariffs, but so would every country they had just visited — and almost every country on the planet, for that matter.“Thank God the Wi-Fi on the plane was not bad this time,” Mr. Levine said, “because I would have had a heart attack.”The balloons, plates and decorations that the Levines import are just a speck in the trillions of dollars in goods that swirl around the globe. A week after Mr. Trump announced his so-called reciprocal tariffs, he pulled them back for most countries for at least 90 days, while sending tariffs on China even higher.Countries or major companies may be able to lobby the president for a break, as he seemed to give Apple and other electronics makers over the weekend. But the best the Levines of the world can do is wait for news updates and hope their plans haven’t been shredded by Mr. Trump’s vision for unraveling decades of global trade. And like thousands of other small-business owners who sell online, the Levines are struggling to adapt to an e-commerce system that let them tap into international markets but that is now on the verge of falling apart.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Trump’s Tariff Threat for Drug imports Poses Big Political Risks

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      Levies on Americans’ daily prescriptions and other medicines could raise costs, spur rationing and lead to shortages of critical drugs.President Trump’s decision to move a step closer to imposing tariffs on imported medicines poses considerable political risk, because Americans could face higher prices and more shortages of critical drugs.The Trump administration filed a federal notice on Monday saying that it had begun an investigation into whether imports of medicines and pharmaceutical ingredients threaten America’s national security, an effort to lay the groundwork for possible tariffs on foreign-made drugs.Mr. Trump has repeatedly said he planned to impose such levies, to shift overseas production of medicines back to the United States. Experts said that tariffs were unlikely to achieve that goal: Moving manufacturing would be hugely expensive and would take years.It was not clear how long the investigation would last or when the planned tariffs might go into effect. Mr. Trump started the inquiry under a legal authority known as Section 232 that he has used for other industries like cars and lumber.Mr. Trump said in remarks to reporters on Monday that pharmaceutical tariffs would come in the “not too distant future.”“We don’t make our own drugs anymore,” Mr. Trump said. “The drug companies are in Ireland, and they’re in lots of other places, China.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Trump’s Tariff Pause Is Less Than Meets the Eye

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      Presidents who make big changes in government policy usually lay their plans with care. They game out what might happen next. They sweat the little things. Richard Nixon did not just decide one morning to fly to China. Ronald Reagan’s tax cuts were the better part of a decade in the making. The details of Barack Obama’s expansion of health insurance emerged from countless public debates.President Trump prefers to shoot before aiming. Declaring that he intends to reboot America’s relations with the rest of the world, he has imposed tariffs on imports with abandon, demonstrating a disregard for the details or the collateral damage. His careless conduct of the public’s business has roiled stock and bond markets, threatened to cause a recession and damaged America’s global standing. The president’s decision-making has been so erratic that at one point this week, the administration’s top trade official was interrupted in the middle of testimony before Congress because the president had just changed the policy the official was defending.The original version of Mr. Trump’s plan, which he paused on Wednesday, imposed tariffs on foreign nations at rates that bore no apparent connection to America’s national interests. The highest tariff rate, 50 percent, applied to Lesotho, a tiny and impoverished nation in southern Africa.The latest version isn’t much better. Mr. Trump is imposing a 10 percent tariff on imports from most nations, along with higher rates on imports from America’s three largest trading partners: Canada, Mexico and China. The average tax on imports will rise to the highest level in more than a century, raising the prices on many consumer goods. The 145 percent maximum rate on Chinese imports is intended to isolate that nation economically, but the simultaneous tariffs on everyone else will undermine that goal. And while the stated purpose of all the tariffs is to expand American manufacturing, putting them in place immediately doesn’t give companies time to build factories. It will cause pain without any benefit.We want to emphasize that Mr. Trump has a point about the pain caused by free trade. The decades in which the United States threw open its doors to imports from other countries left many Americans without jobs and decimated the nation’s industrial heartland. Washington’s naïveté about China’s rise, accomplished partly through its own trade barriers and theft of intellectual property, is particularly regrettable.A revival of American manufacturing is a worthy goal. It would not heal past wounds, but it could provide a basis for future generations of Americans to build lives and to rebuild communities that are more prosperous and more secure.The price of cheap goods from ChinaDecrease in manufacturing employment caused by increased trade with China, 2000-19. More