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      As Backlash to Trump’s Tariffs Grows, Europe Boycotts American Brands

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      A shifting perception of the United States amid President Trump’s trade war is prompting Europeans to pivot decisively away from U.S. goods and services.For motorcycle lovers in Sweden, Harley-Davidson is the hottest brand on the road. Jack Daniels whiskey beckons from the bar at British pubs. In France, Levis jeans are all about chic.But in the tumult of President Trump’s trade war with Europe, many European consumers are starting to avoid U.S. products and services in what appears to be a decisive and potentially long-term shift away from buying American, according to a new assessment by the European Central Bank.In April, Mr. Trump imposed a 10 percent blanket tariff on America’s trading partners, and threatened “reciprocal tariffs” on many of those, including the European Union. Companies like Tesla and McDonald’s are seeing customers in Europe put off by “Made in America.”“The newly imposed U.S. trade tariffs on European products are causing European consumers to think twice about what’s in their shopping cart,” the E.C.B. wrote in a blog post about its research on consumer behavior. “Consumers are very willing to actively move away from U.S. products and services.”Europeans had already begun testing grass-roots boycotts on American products, including Heinz ketchup and Lay’s potato chips, shortly after Mr. Trump took office. His threats to take over Greenland, part of Denmark, energized Danes to organize no-buy campaigns on Facebook. Tesla owners in Sweden slapped “shame” bumper stickers on their cars to distance themselves from Elon Musk, the Tesla chief executive who is one of Mr. Trump’s top advisers.Motorcycles in a Harley-Davidson dealership in Paris. The E.C.B. study said that even households that could bear the brunt of higher prices were moving away from U.S. goods.Gonzalo Fuentes/ReutersWe 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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      Warren Buffett Criticizes Trump’s Trade Policies

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      “Trade should not be a weapon,” he said at Berkshire’s annual shareholders’ meeting. Investors had been awaiting his comments on trade, given the conglomerate’s status as an economic bellwether.Warren E. Buffett took a shot at President Trump’s efforts to use tariffs to batter global commerce on Saturday, as his $1.1 trillion conglomerate, Berkshire Hathaway, braced for potential hits from American trade policies.“Trade should not be a weapon,” Mr. Buffett said at Berkshire’s annual shareholder meeting, a perennially popular event that has been nicknamed the Woodstock of capitalism. “I don’t think it’s right and I don’t think it’s wise.”Mr. Buffett’s comments were long awaited by Berkshire’s shareholders, tens of thousands of whom flocked to the company’s hometown in Omaha to hear directly from the investor — particularly on Mr. Trump’s trade policies. His comments on Saturday ended what had been months of Mr. Buffett maintaining a largely low public profile.Mr. Buffett’s comments were especially notable as the 94-year-old billionaire acknowledged that he had previously proposed an idea to help address trade imbalances. But on Saturday, the Berkshire chief defended the broader concept of global trade flows: “We should do what we do best and they should do what they do best,” he said, drawing applause.Fears about the consequences of the tariffs have roiled markets and affected vast swaths of American companies. That includes Berkshire, which on Saturday reported a sharp drop in first-quarter earnings.The company reported $9.6 billion in operating income, Mr. Buffett’s preferred measure, down 14 percent from the same time a year ago. Using generally accepted accounting principles, Berkshire reported a nearly 64 percent drop in net income, largely because of paper investment losses.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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      They Help Companies Set Prices. Tariffs Are Making It Trickier.

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      Pricing strategists are navigating the possibility that input costs, the economy and consumer behavior may all shift drastically.As companies scramble to respond to President Trump’s ever-changing tariff policies, some of the pressure has fallen directly on a tiny corner of the consulting world.Known as pricing strategy, it uses tools like customer research, historical data, economic modeling and competitive analysis to recommend not only what price tag to put on items but how to structure prices to maximize revenue and profit.Often a pricing strategist’s work involves simulating how different pricing strategies and prices could affect sales. But brand rules and psychology can also come into play. It’s part art, part science.And lately, it’s been trickier.Nobody knows how Trump’s tariff policies will change, how those tariffs will affect the overall economy or how consumers will adjust their spending as a result — all of which can be key metrics when determining pricing.“It’s some of the highest levels of uncertainty that I’ve seen over my 25-year career,” Robert Haslehurst, who leads the global pricing practice at L.E.K. Consulting, told DealBook. Only the first weeks of Covid lockdowns and the start of the 2007-8 financial crisis came close.Times like these can be a “golden opportunity,” said William Humsi, a partner at the consumer strategy firm Simon-Kucher who mostly works with B2B companies. A brand that imports less from countries with high tariffs than its competitors may be able to defend its market share by keeping prices lower, or use other players’ need to raise prices as cover for its own price increases, known as “taking price” in industry parlance.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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      Someone Should Tell Trump He’s About to Make the Trade Deficit Worse

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      There are many reasons President Trump should not be pushing Congress to pass huge tax cuts, but here’s one you may not have heard: Budget deficits and trade deficits are twins. When the former go up, so, generally, do the latter. So at the same moment Mr. Trump is upending the global economy in a feckless attempt to eliminate America’s trade deficit, he’s essentially pressuring Congress to increase it.Here’s how it happens. The United States buys a lot of goods from other countries, and we pay for the goods with dollars. But those dollars are no good abroad, so the countries we buy from invest them here. Some of the money goes, directly or indirectly, into businesses that are raising cash to build new data centers or expand natural gas facilities or construct new apartment complexes. Other dollars go into Treasury bonds or bills, which the federal government uses to fund our large budget deficit. (The same thing happens in reverse when other countries buy from the United States — but to a lesser degree, since our imports are larger than our exports.)If the budget deficit rises, American investors could theoretically cover the shortfall, but that would mean putting their money in Treasury securities rather than businesses and their capital needs. The other option is that foreign countries amass more dollars and plow them back into the U.S. economy. How would they get those additional dollars? From all the German cars and Chinese electronics and imported beer that Americans will buy with the money from their tax cuts.More generally, a larger budget deficit will require the government to borrow more money, which drives up interest rates. Higher interest rates mean a stronger dollar, which makes it more expensive for people in other countries to buy our products, cheaper for us to buy theirs, and thus the trade deficit widens.So cutting taxes, as Mr. Trump has told Congress to do, will drive up the budget deficit — and the trade deficit. All of this may seem counterintuitive, but it’s one of the few things that economists agree about.The budget deficit is already worryingly high and the tax cuts Mr. Trump is seeking would make it even larger. Last year the United States ran a $1.8 trillion budget deficit, or 6 percent of the gross domestic product — higher than at any other time except during World War II, the late-2000s financial crisis and the Covid-19 pandemic — despite strong economic growth and no unusual emergencies.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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      For the U.S. and China, the Only Talking Is About Whether to Talk

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      The standoff over terms of negotiations, and whether they are happening, signals that a protracted economic fight lies ahead.As trade tensions flared between the world’s largest economies, communication between the United States and China has been so shaky that the two superpowers cannot even agree on whether they are talking at all.At a White House economic briefing this week, Treasury Secretary Scott Bessent demurred multiple times when pressed about President Trump’s recent claim that President Xi Jinping of China had called him. Although top economic officials might usually be aware of such high-level talks, Mr. Bessent insisted that he was not logging the president’s calls.“I have a lot of jobs around the White House; running the switchboard isn’t one of them,” Mr. Bessent joked.But the apparent silence between the United States and China is a serious matter for the global economy.Markets are fixated on the mystery of whether back-channel discussions are taking place. Although the two countries have not severed all ties, it does seem that they have gone dark when it comes to conversations about tariffs.“China and the U.S. have not held consultations or negotiations on the issue of tariffs,” Guo Jiakun, a spokesman for China’s foreign ministry, said at a news conference last Friday. “The United States should not confuse the public.”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

    • 175 Shares183 Views

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      GM Cuts Profit Forecast by 20% and Says Auto Tariffs Will Cost It Billions

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      General Motors now expects to earn a lot less than it did before President Trump imposed 25% tariffs on imported cars and auto parts.General Motors cut its profit forecast for 2025 on Thursday by more than 20 percent and said that the Trump administration’s tariffs would increase its costs by $4 billion to $5 billion this year.In a conference call with analysts, G.M. executives said the company now expects to make $8.2 billion to $10.1 billion this year, down from a previous forecast of $11.2 billion to $12.5 billion.“G.M.’s business is fundamentally strong as we adapt to the new trade policy environment,” the company’s chief executive, Mary T. Barra, said.In April, President Trump imposed tariffs of 25 percent on imported vehicles and will begin imposing the same duty on imported auto parts on Saturday. On Tuesday the president modified how the tariffs are applied to give automakers some relief, including partial reimbursement for tariffs on imported parts for two years.Ms. Barra said G.M. hopes to offset about 30 percent of the impact of the tariffs by increasing production in U.S. plants, cutting costs, and working with suppliers to raise their domestic production of parts and components.G.M. had previously said it was increasing pickup truck production at a plant near Fort Wayne, Ind., which will reduce the number of vehicles it imports from Canada and Mexico. Ms. Barra said output at the Fort Wayne factory would increase by about 50,000 trucks this year.She also said G.M. now plans to make more battery modules in its U.S. plants to raise the portion of domestic content in its electric vehicles.About $2 billion in tariff-related cost increases will come from vehicles that are made in Canada, Mexico and South Korea and sold in the United States.Analysts have predicted that the tariffs will add thousands of dollars to the cost of new cars and trucks, and some or all of that would be passed on to consumers. In the call, G.M.’s chief financial officer, Paul Jacobson, said the company now expects new vehicle prices to rise 0.5 percent to 1 percent this year, he added. Previously, the company had forecast that pricing would fall by 1 percent to 1.5 percent.Other automakers are also planning to produce more vehicles in the United States. Mercedes-Benz said Thursday that it would build a new vehicle at an Alabama factory as part of what the German carmaker called a “deepening commitment” to manufacturing in the United States.While the company did not mention tariffs, Mercedes and other carmakers have been at pains in recent weeks to emphasize how many cars they already build in the United States and their plans to make more. Mercedes did not provide details about the car, except to say that it would be a new design tailored to the U.S. market and begin production in 2027.The company’s factory near Tuscaloosa, Ala., primarily assembles luxury sport utility vehicles, including electric models, for sale in the United States and export to other markets.Jack Ewing More

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      A Tidal Wave of Change Is Headed for the U.S. Economy

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      When the Covid pandemic hit, factories in China shut down and global shipping traffic slowed. Within a matter of a few weeks, products began disappearing from U.S. store shelves and American firms that depend on foreign materials were going out of business.A similar trend is beginning to play out, but this time the catalyst is President Trump’s decision to raise tariffs on Chinese imports to a minimum of 145 percent, an amount so steep that much of the trade between the United States and China has ground to a halt. Fewer massive container ships have been plying the ocean between Chinese and American ports, and in the coming weeks, far fewer Chinese goods will arrive on American shores.While high tariffs on Chinese products have been in place since early April, the availability of Chinese products and the price that consumers pay for them has not changed that much. But some companies are now starting to raise their prices. And experts say that the effects will become more and more obvious in the coming weeks, as a tidal wave of change stemming from canceled orders in Chinese factories works its way around the world to the United States.The number of massive container ships carrying metal boxes of toys, furniture and other products departing China for the United States has plummeted by about a third this month.The reason consumers haven’t felt many of the effects yet is because it takes 20 to 40 days for a container ship to travel across the Pacific Ocean. It then takes another one to 10 days for Chinese goods to make their way by train or truck to various cities around the country, economists at Apollo Global Management wrote in a recent report. That means that the higher tariffs on China that went into effect at the beginning of April are just starting to result in a drop in the number of ships arriving at American ports, a trend that should intensify.By late May or early June, consumers could start to see some empty shelves, and layoffs could occur for retailers and logistics industries. The major effects on the U.S. economy of shutting down trade with China will start to become apparent in the summer of 2025, when the United States might slip into a recession, said Torsten Slok, an economist at Apollo.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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      TEFAF New York Keeps Its Focus on the Classics In a Turbulent Time

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      With the art market outlook uncertain, the New York fair aims to keep collectors coming, with a wide array of art and (relatively) less expensive prices.When the European Fine Art Foundation (TEFAF) held its very first New York fair at the historic Park Avenue Armory in 2016, the global art market was in robust health: Art sales had marked a near-record of $64 billion worldwide in the preceding year, and were at a peak in the United States, according to an art market report by the cultural economist Clare McAndrew.As TEFAF New York prepares to welcome visitors again — running from May 9 through 13, and coinciding with the closely watched May auctions — the outlook is downright cloudy. Global art sales tumbled for the second year in a row in 2024, totaling an estimated $57.5 billion, and the U.S. market was down 9 percent from the previous year, according to the recent Art Basel and UBS Global Art Market Report. More recently, stock markets have been jittery since President Trump announced sweeping tariffs on countries around the world on April 2, then said he would back down on tariffs on goods from most countries, except China, for 90 days. Economic turbulence has an immediate impact on the net worth — and the collecting appetite — of those who buy art.“The volatility that you see in the markets writ large is reflected in the art market,” said Alex Logsdail, chief executive of the Lisson Gallery, an international art dealership. He said business had “slowed significantly,” though it was “still happening” and “has not fallen off a cliff” as it did at the time of the 2008 global financial crisis.“This is a funny thing for me to say out loud, but it’s true: Nobody needs any of the things we are selling,” he said. Collecting art is “a question of want and desire and passion and confidence. It is up to us to create those conditions,” regardless of the economic context, he added.Lisson has exhibited at TEFAF New York’s spring fair from its first iteration in 2017, and Logsdail served for a time on its selection committee (which decides which galleries will get booths). He said TEFAF New York was well positioned for the current circumstances, because in unstable economic conditions, the focus turns to quality and value, and to “well-tested” and affordably priced objects. And right now, he said, “people are taking a very active interest in artists whose prices are quite low.”Among the works showing at Lisson’s TEFAF booth this spring are works by Sean Scully, including “Wall Tappan Deep Red” (2025).Sean Scully / Courtesy Lisson GalleryWe 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