Protectionism (Trade)

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    Trump Threatens 50% Tariff on E.U. and 25% Tariff on Apple

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    The president threatened both Apple and the European Union with higher tariffs on social media Friday morning, saying that trade talks with the Europeans had stalled.President Trump threatened to revive his global trade wars Friday morning, saying he would apply a steep tariff to European exports starting in just over a week and warning Apple that iPhones manufactured outside of the United States would face a 25 percent tariff.The president wrote on Truth Social Friday morning that discussions with the European Union “are going nowhere” and that he is recommending a 50 percent tariff on European imports as of June 1.“The European Union, which was formed for the primary purpose of taking advantage of the United States on TRADE, has been very difficult to deal with,” Mr. Trump wrote. He claimed the bloc’s trade barriers, taxes, corporate penalties and other policies had contributed to a trade imbalance with the United States that was “totally unacceptable.”In an earlier social media post, the president also targeted Tim Cook, the chief executive of Apple, who visited Mr. Trump at the White House last week. The president wrote that iPhones sold in the United States should be “manufactured and built in the United States, not India, or anyplace else.”If they are not, Mr. Trump said the smartphones would face a 25 percent tariff.The posts appeared to rattle financial markets, with stock futures pointed sharply lower in premarket trading. In Europe, carmakers’ shares were the worst hit. Shares in Stellantis and Mercedes-Benz fell about 4.5 percent, and shares in Volkswagen and Porsche were down more than 3 percent. Estimates by the Kiel Institute for the World Economy, a German economic research institute, showed that the tariffs would lead to a 20 percent drop in exports from the European Union to the United States in the short term, as well as a more than 6 percent increase in prices in the United States.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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      India and UK Strike Trade Deal Amid Trump’s Tariff Upheaval

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      The two countries signed a deal three years after negotiations began to strengthen alliances in what the British prime minister called a “new era” of trade.Britain and India agreed to a trade deal on Tuesday, strengthening economic ties between two of the world’s largest economies amid President Trump’s upheaval of the global trade system.The deal, which the British government said would increase bilateral trade by £25.5 billion ($34 billion), comes three years after the negotiations began. Intense talks between Jonathan Reynolds, Britain’s business and trade secretary, and Piyush Goyal, India’s commerce minister, took place last week to finalize the outstanding issues.The British government said India had reduced 90 percent of tariffs on goods, and within a decade most of those would become tariff free. Duties on British whiskey and gin would be halved, to 75 percent, and eventually be lowered to 40 percent. India will also reduce its car tariffs, which exceed 100 percent, to 10 percent under a quota. Britain, in turn, reduced tariffs on clothes, footwear and food products including frozen prawns.Last year, trade in goods and services between India and Britain, the world’s fifth and sixth largest economies, totaled £42.6 billion, according to British data.The trade agreement comes as many countries are seeking to bolster alliances and trade flows after Mr. Trump sent shock waves through the global economy by announcing, and then pausing, high tariffs on dozens of countries. The uncertainty created by the policy whiplash is expected to dampen investment and economic growth around the world.Officials in Britain, which squeezed out 0.1 percent economic growth in the final quarter of last year, have tried to increase investment from foreign companies and sign more trade deals. Other negotiations, including those with South Korea, are continuing.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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      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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      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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      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

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      Inside Trump’s Reversal on Tariffs: From ‘Be Cool!’ to ‘Getting Yippy’

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      Economic turmoil, particularly a rapid rise in government bond yields, caused President Trump to reverse course on the steep levies.For the past week, President Trump has been urging calm in the face of the financial chaos that he created and resisting calls for him to rethink his approach.“I know what the hell I’m doing,” he told Republicans on Tuesday as the massive tariffs he had imposed sent global markets into a tailspin. “BE COOL!” he said in a social media post on Wednesday morning. “Everything is going to work out well.”At 9:37 a.m. Wednesday, the president was still bullish on his policy, posting on Truth Social: “THIS IS A GREAT TIME TO BUY!!!”But in the end, it was the markets that got him to reverse course.The economic turmoil, particularly a rapid rise in government bond yields, caused Mr. Trump to blink on Wednesday afternoon and pause his “reciprocal” tariffs for most countries for the next 90 days, according to four people with direct knowledge of the president’s decision.Asked to explain the decision, Mr. Trump told reporters: “Well, I thought that people were jumping a little bit out of line. They were getting yippy, you know, they were getting a little bit yippy, a little bit afraid.”Behind the scenes, senior members of Mr. Trump’s team had feared a financial panic that could spiral out of control and potentially devastate the economy. Treasury Secretary Scott Bessent and others on the president’s team, including Vice President JD Vance, had been pushing for a more structured approach to the trade conflict that would focus on isolating China as the worst actor while still sending a broader message that Mr. Trump was serious about cracking down on trade imbalances.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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      Lawsuit Challenges Trump’s Legal Rationale for Tariffs on China

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      The New Civil Liberties Alliance — a nonprofit group that describes itself as battling “violations by the administrative state” — sued the federal government on Thursday over the means by which it imposed steep new levies on Chinese imports earlier this year.The new filing, which the group said was the first such lawsuit to challenge the Trump administration over its tariffs, set the stage for what may become a closely watched legal battle. It comes on the heels of President Trump’s separate announcement on Wednesday of broader, more extensive tariffs targeting many U.S. trading partners around the world.At issue are the tariffs that Mr. Trump announced on China in February and expanded in March. To impose them, Mr. Trump cited a 1970s law that generally grants the president sweeping powers during an economic emergency, known as the International Emergency Economic Powers Act, or IEEPA.Mr. Trump charged that an influx of illegal drugs from China constituted a threat to the United States. But the alliance argued in the lawsuit, on behalf of Simplified, a Pensacola, Fla.-based company, that the administration had misapplied the law. Instead, the group said the law “does not allow a president to impose tariffs,” but rather is supposed to be reserved for putting in place trade embargoes and sanctions against “dangerous foreign actors.”Port Manatee in Palmetto, Fla., on TuesdayScott McIntyre for The New York TimesMr. Trump cited that same law as one of the legal justifications for the expansive global tariffs he announced with an executive order on Wednesday. That order raised the tariff rate on China to at least 54 percent, adding new levies on top of those that the president imposed earlier this year.Mr. Trump’s new order specifically described the U.S. trade deficit with other nations as “an unusual and extraordinary threat to the national security and economy of the United States.”For now, the alliance asked the U.S. District Court in the Northern District of Florida to block implementation and enforcement of the president’s earlier tariffs on China. “You can look through the statute all day long; you’re not going to see the president may put tariffs on the American people once he declares an emergency,” said John J. Vecchione, senior litigation counsel for the alliance.A spokesman for the White House did not immediately respond to a request for comment. More

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      Trump’s Tariff Agenda Bets on Americans Giving Up Cheap Goods

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      Treasury Secretary Scott Bessent argues that the American dream is about more than cheap televisions, but inflation-weary consumers might disagree.President Trump’s sweeping tariffs are expected to raise the cost of cars, electronics, metals, lumber, pharmaceuticals and other products that American consumers and businesses buy from overseas.But Mr. Trump and his advisers are betting that it can sell an inflation-weary public on a provocative idea: Cheap stuff is not the American dream.“I couldn’t care less if they raise prices, because people are going to start buying American-made cars,” Mr. Trump said on NBC’s Meet the Press show on Sunday in response to fears of foreign car prices spiking.The notion that there is more to life than low-cost imports is an acknowledgment that tariffs could impose additional costs on Americans. It is also a pitch that the burden will be worth it. Mr. Trump’s ability to convince consumers that it is acceptable to pay more to support domestic manufacturing and adhere to his “America First” agenda could determine whether the president’s second term is a success or a calamity.But it is not an easy sell. The onslaught of tariffs has roiled markets and dampened consumer confidence. Auto tariffs that go into effect on Thursday will add a 25 percent tax on imports of cars and car parts, likely upending pricing in the sector. Mr. Trump has already imposed tariffs of 20 percent on Chinese goods and more are expected later this week, when the president announces his “reciprocal” tariffs on major trading partners, including those in Asia and Europe.In confronting anxiety over the trade uncertainty, Mr. Trump and his top economic aides have resorted to asking Americans to think about the bigger picture. They espouse the view that Mr. Trump’s trade wars are necessary to correct decades of economic injustice and that paying a bit more should be a matter of national pride.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 Have Sown Uncertainty. That Might Be the Point.

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      Since taking office, President Trump and his advisers have explained the president’s aggressive economic approach to tariffs with a litany of conflicting ideas. Other countries are “ripping off” America and need to be stopped. The United States is fighting a drug war with Canada, Mexico and China. Tariffs will help pay down the nation’s $36 trillion debt load.The messaging hodgepodge comes as the U.S. economy shows signs of strain in response to Mr. Trump’s steep tariffs on Canada, Mexico and China and as he prepares to enact “reciprocal” tariffs on imports from around the world on April 2.The tariffs have sowed uncertainty and dampened business investment and consumer sentiment while sending markets gyrating daily. They are also likely to prevent the Federal Reserve from cutting rates as policymakers wait to see exactly what measures Mr. Trump follows through with and how they affect the economy.But rather than trying to provide more coherence about their economic strategy, Mr. Trump and his advisers seem to be embracing the uncertainty of his approach as a feature, not a bug.“Absolutely, between now and April 2, there’ll be some uncertainty,” Kevin Hassett, the director of the White House’s National Economic Council, said on CNBC this week amid questions about what investors are to make of Mr. Trump’s trade agenda.Mr. Trump, when asked whether he would give the business community more clarity about his overall approach, largely dismissed concerns that corporations needed predictability.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