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      Musk Says He Hopes Europe and U.S. Move to a ‘Zero-Tariff Situation’

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      Only three days after President Trump announced sweeping tariffs, including a 20 percent tariff on goods from the European Union, Elon Musk said on Saturday that he hoped that Europe and the United States moved “to a zero-tariff situation, effectively creating a free-trade zone.”Mr. Musk made the remarks during a videoconference appearance with Italy’s far-right League party in Florence. They came after the tech billionaire turned presidential confidant had stayed largely silent about Mr. Trump’s tariffs.During Mr. Trump’s first term, Mr. Musk had said there should be “no tariffs at all either way” between the United States and Britain.Mr. Musk also said that he hoped that the United States and Europe could “establish a very close partnership,” a statement that contrasted with the contempt members of Mr. Trump’s administration have shown for Europe, and statements by Mr. Trump himself, who claimed the European Union was created to “screw” America. He added that he wished there were “more freedom of people to move between Europe and North America.”Mr. Musk’s appearance at the League’s meeting, in which he warned of the dangers of censorship and mass immigration, came as he continued to use his influence to bolster far-right forces across Europe.Just a day earlier, Mr. Musk and Mr. Trump had voiced support for Marine Le Pen, the French far-right leader, who was convicted this week on embezzlement charges and disqualified from running for public office. Earlier this year, Mr. Musk publicized the German far-right Alternative for Germany party and weighed into Italy’s immigration debate, prompting the country’s president to rebuke him.On Saturday, he appeared at the party conference with Matteo Salvini, the leader of the League party. During his brief intervention, Mr. Musk also promoted the activities of his cost-cutting Department of Government Efficiency, supported Mr. Trump’s position on the war in Ukraine and attacked what he called the overregulation of the European Union. More

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      A Tariffs Cheat Sheet

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      An escalating global trade war has tanked markets and plunged corporate America into chaos. DealBook asked economists, investors and other experts to help make sense of what’s next.It was much worse than expected. President Trump’s attempt to reverse the rules of global trade through sweeping tariffs against dozens of nations, including major partners like the European Union, Japan and China, has caused a meltdown in global markets and sent corporate boardrooms scrambling.Today, 10 percent tariffs go into effect on all of America’s trading partners except Canada and Mexico. Additional, “reciprocal” tariffs will go into effect on dozens of other nations on Wednesday. China faces the toughest levies — at least 54 percent — and it hit back with its own toll on U.S. goods yesterday. Expect a response from the E.U. next week.Trump has argued that the economic pain caused by the tariffs will be short term and ultimately justified by a boom in the U.S. economy, but news of the measures hit investors hard. The benchmark S&P 500 closed yesterday near bear market territory, with analysts warning of an increased risk of recession.Jerome Powell, the head of the U.S. Federal Reserve, offered a somewhat glum outlook yesterday on the prospects for growth and warned of higher prices that he acknowledged could be more than temporary.There’s a lot going on. DealBook asked economists, investment researchers and other experts to help make sense of what’s next.How have the new tariffs changed the risk of a recession?We asked: Jason Furman, a professor of economics at Harvard and former economic adviser to President Barack Obama.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 Tariffs: How the Math Affects Over 100 Countries

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      <!–> [–><!–>President Trump's new tariffs on more than 100 countries used the same simple formula to calculate the rate for each of them.–><!–> –><!–> [–><!–>The formula’s central value is the trade deficit, the difference between imports and exports between each country and the United States, for the year 2024.–><!–> –> <!–> –><!–> [–><!–> –> <!–> […] More

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      Ford offers discounts on cars and trucks as auto tariffs kick in.

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      Ford Motor said on Thursday that it was lowering prices on most of its vehicles to the same levels it charges employees in a bid to boost sales as President Trump’s tariffs on imported cars took effect.The tariffs began on Thursday on vehicles imported from Mexico, Canada, Japan, Germany and other countries. The duties — 25 percent of the value of the vehicle in most cases — are expected to increase prices of new cars and trucks and dampen demand.About half the vehicles sold in the United States each year are produced in other countries. Mexico is the top source of those cars and Canada is among the largest. For three decades, the United States, Canada and Mexico have had a free-trade zone, and automakers have moved parts and vehicles freely among the three countries.Ford’s new program, which the company is calling “From America, for America,” could help reduce a large inventory of unsold cars. In February, Ford had more cars in inventory as measured by how many days it would take to sell them all than all but three other brands — Jaguar, Mimi and Dodge — according to Cox Automotive, a research firm.Ford’s new discounts apply to all new 2024 and 2025 vehicles, except for specialty versions of the Bronco sport-utility vehicle; the Mustang sports car; Super Duty versions of F-Series pickups; and a few other models.“Consumers will pay what we pay,” Rob Kaffl, Ford’s director of U.S. sales and dealer relations, said in a statement.The automaker also said it was extending another incentive program in which buyers of new electric models get a home charger for free, along with the cost of installation. That offer is now valid until June 30.Ford had more than 568,000 vehicles in inventory at the end of March, up about 8 percent from a year ago. More

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      Apple Plunges 9 Percent, Leading a Tech Sell-Off

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      Apple led a sell-off of tech stocks on Thursday, falling about 9 percent. Its drop was one of its steepest intraday declines since early 2019, when the company plunged 10 percent after it warned that iPhone sales in China would fall short of its expectations at the time.Wall Street analysts who follow the company have been looking for signs that Apple will be granted a tariff exemption by the White House, as it did when the Trump administration began its previous round of tariffs in 2018. But after President Trump’s news conference yesterday, there was no indication that Apple would receive any relief.As a result, many analysts were scrambling to update their forecasts on Apple’s profits. The company counts on the sale of devices for three-quarters of its nearly $400 billion in annual revenue, and it makes almost all of its iPhones, iPads and Macs overseas.The investment bank TD Cowen estimates that every 10 percent of tariffs on a product imported from China, India or Vietnam — where Apple does most of its manufacturing — would reduce the company’s profit by more than 3.5 percent. The Wall Street advisory said Apple could offset that profit decline with a 6 percent price increase for every 10 percent of tariff. Given that China is being hit with 54 percent tariffs and that it makes 90 percent of the world’s iPhones, the price of most $1,000 iPhones would jump to about $1,300. More

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      How Are Trump’s Tariff Rates Calculated?

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      As he unfurled his list of tariffs targeting most of America’s trading partners, President Trump repeatedly stressed that each nation’s rate was reciprocal — reflecting the barriers they had long erected to U.S. goods.He said little about the methodology behind those calculations, but a possible answer emerged later on Wednesday. Each country’s new tariff rate appeared to be derived by:Taking the trade deficit that America runs with that nation and dividing it by the exports that country sent into the United States.Then, because Mr. Trump said he was being “kind,” the final tariff number was cut in half.James Surowiecki, a financial writer and book author, first pointed out the trend in a post on X. His comment set off widespread speculation, given that Mr. Trump previously said each nation’s tariff rate would be “the combined rate of all their tariffs, non-monetary barriers and other forms of cheating.”Those non-monetary barriers include a host of hard-to-quantify laws and other policies that Mr. Trump sees as the primary reason that the U.S. experiences such trade imbalances in the first place. (There are exceptions: Some nations face only a standard 10 percent minimum tariff starting this month.)In an earlier briefing with reporters, White House officials said the figures were calculated by the Council of Economic Advisers using well-established methodologies. The official added the model was based on the concept that the trade deficit that we have with any given country is the sum of all the unfair trade practices and “cheating” that country has done.The White House later clarified its methodology in this post. Though it uses some mathematical symbols that might be hard to parse, it confirms that the formula is essentially based on the U.S. trade deficit with a foreign country, divided by the country’s exports.“It was always going to be a really difficult exercise to come up with a very precise reciprocal tariff rate,” said Emily Kilcrease, the director of the Energy, Economics and Security Program at the Center for a New American Security and a former deputy assistant U.S. trade representative.“Given what seems to be their desire to get something out quickly, it appears what they’ve done is come up with an approximation that is consistent with their policy goals,” she said. More

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      Americans’ Reaction to Trump’s Tariffs Range From Worried to Enthusiastic

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      President Trump’s announcement of sweeping universal and so-called reciprocal tariffs on countries around the world drew a swift rebuke on Wednesday from business groups, trade experts, Democratic lawmakers and many economists who warned that they would raise prices for American consumers and slow economic growth.“This is catastrophic for American families,” said Matt Priest, president and chief executive of the Footwear Distributors and Retailers of America. “We had hoped the president would take a more targeted approach, but these broad tariffs will only drive-up costs, reduce product quality and weaken consumer confidence.”Other reactions were more muted, and some positive, saying the move was long overdue.“Today is arguably the single greatest trade and economic policy action in the history of the country, and it absolutely cements President Trump’s legacy that he is trying to usher in a new golden age of economy production and prosperity,” said Nick Iacovella, executive vice president at the Coalition for a Prosperous America, a group that supports tariffs. He said the tariffs would contribute to “broadly re-industrializing the United States and creating working class jobs.”Mr. Trump insisted on Wednesday that experts had been wrong all along about his tariffs and that the anxiety about them now was misplaced. But those who will be forced to pay the tariffs were quick to raise concerns about the move, which will increase import taxes on products from some of America’s biggest trading partners including China, the European Union, Japan and India.The National Retail Federation said in a statement that the tariffs would “equal more anxiety and uncertainty for American businesses and consumers.” Tariffs are not paid for by foreign countries or suppliers but by U.S. importers, they said. They also added that “the immediate implementation of these tariffs is a massive undertaking and requires both advance notice and substantial preparation by the millions of U.S. businesses that will be directly impacted.”The National Association of Manufacturers said it was still parsing the details and exact implications of the president’s tariffs. But the group’s president, Jay Timmons, said in a statement that the high costs of new tariffs threatened “investment, jobs, supply chains and, in turn, America’s ability to outcompete other nations and lead as the pre-eminent manufacturing superpower.”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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      Chinese Auto Giants Dongfeng and Changan Are in Talks to Merge

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      The state-owned automakers, longtime joint venture partners of Ford and Nissan, might combine operations as Beijing consolidates its sprawling car sector.Two of China’s biggest state-owned automakers are in advanced discussions to merge, in a deal that would create a formidable manufacturer of cars and military vehicles but could also create problems for their American and Japanese partners.Dongfeng Motor and Changan Automobile have conducted detailed talks on how to combine their operations and told their foreign partners of their intentions, said two people with detailed knowledge of the discussions who were not authorized to comment.Although little known outside China, each company produces slightly more cars for its own brands and through joint ventures than global automakers like Mercedes-Benz or BMW. Dongfeng and Changan together make about 5 million cars a year — more than Ford Motor and almost as many as General Motors or Stellantis, the giant that owns Fiat, Chrysler and Peugeot.A merger of Dongfeng and Changan would represent a significant consolidation of China’s auto market, the world’s largest, and another sign of the country’s rapid embrace of electric vehicles. Both companies have considerably more factory capacity for producing gasoline-powered cars than they need.Beijing’s hope is that a combined company will be able to close excess factories for gasoline cars and become more successful in electric cars.China’s national government owns controlling stakes in Dongfeng and Changan. Dongfeng is a leading supplier of military vehicles to the People’s Liberation Army and Changan is a subsidiary of a Chinese military contractor, which could draw unwanted attention from the Trump administration to a new, larger military supplier and its joint venture partners.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