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    Trump’s Tariffs Could Deal a Blow to Boeing and the Aerospace Industry

    Aerospace companies are big exporters but also very reliant on a global supply chain, making them vulnerable.Boeing is the kind of manufacturer — one that exports billions of dollars of goods — that President Trump says he wants to protect and nurture.But his tariffs could have the opposite effect on the company’s suppliers.Mr. Trump has imposed a few tariffs so far, but he says more are coming in just a few weeks. That threat has unnerved the aerospace industry, of which Boeing is one of the largest companies. Duties on aluminum and steel, two of the most important raw materials used in aircraft, are expected to raise manufacturing costs. But the industry is far more concerned by tariffs that take effect on goods from Canada and Mexico next month, which could disrupt the highly integrated North American supply chain.“These tariffs are particularly fraught for an industry like aerospace that has been duty-free for decades,” said Bruce Hirsch, a trade policy expert at Capitol Counsel, a lobbying firm in Washington, which has aerospace clients. “Parts are coming from everywhere.”Aerospace experts say the industry is an example of U.S. manufacturing prowess. It offers well-paying jobs and has produced one of the largest trade surpluses of any industry for years. Aerospace is expected to export about $125 billion this year, according to IBISWorld, second only to oil and gas.But the industry is operating under a cloud of uncertainty. Many companies have been able to avoid costly cross-border tariffs under a short-term reprieve for products covered by a North American trade agreement that Mr. Trump negotiated in his first term. But that deal expires in April.In a letter to administration officials last week, groups representing airlines, plane repair stations, suppliers and manufacturers asked for an exception to the tariffs, arguing that it was needed to keep the industry competitive on the global market.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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    In Ukraine’s Frontline Town of Sloviansk, a Taste of Normalcy Beckons

    Serhii Kovalov doesn’t like sushi. Nor does the sushi chef at his restaurant in eastern Ukraine.But when customers started asking for it, Mr. Kovalov navigated both enemy shelling and ordinary supply-chain issues to get fresh fish for Philadelphia rolls to his frontline town, Sloviansk.Now, as Russian forces have drawn closer and life gets more bleak, many Sloviansk residents are weighing whether to flee. Not Mr. Kovalov. He’s determined to keep serving sushi to soldiers and civilians who are seeking comfort, sustenance or a taste of something special after more than three years of war.“I know I’m needed here,” the 30-year-old Mr. Kovalov said, gesturing at the restaurant and the town outside that has long been in Russia’s cross hairs. “So I stay.”Sushi has long been wildly popular in Ukraine, and for people in Sloviansk, this treat provides a sense of much-needed normalcy.When Sloviansk came under attack in February 2022 when Russia’s full-scale invasion began, sushi wasn’t even on the menu at Mr. Kovalov’s restaurant, Slavnyi Horod, or “Glorious City.”Serhii Kovalov, the restaurant’s owner, in front of an apartment he was living in with his wife when it was hit by a Russian missile in 2022.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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    Oil Companies Wanted Trump to Lower Costs. Tariffs Are Raising Them.

    President Trump’s promise during last year’s election to make it far easier to drill for oil and gas thrilled energy executives who believed his policies would lower their costs and help them make a lot more money.Those hopes are now fading. Thanks to Mr. Trump’s tariffs, the oil and gas industry is contending with rising prices for essential materials like steel pipes used to line new wells.That has not yet translated into a meaningful change in U.S. drilling activity or production expectations, but companies have begun revising budgets to reflect higher materials costs. Decisions made today about which wells to drill will affect production many months from now.Oil refineries are separately bracing for a tariff on Canadian oil, which some of them need to produce gasoline, diesel and other fuels.At the same time, consumers have grown jittery about the economy and the price of oil has fallen about 10 percent since just before Mr. Trump took office, to around $70 a barrel. Oil companies tend to drill less when prices fall.The combination could complicate Mr. Trump’s stated desire to juice U.S. oil and natural gas production, which are already at or near record highs.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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    Airbus, With Eye on U.S. Race, Says It Will Be Ready for Higher Tariffs

    The giant European airplane maker’s chief executive said it would pass along any higher charges to its customers.Airbus, the world’s largest commercial airplane manufacturer, said on Wednesday that it was preparing for the possibility that the United States would impose new tariffs on all imports, and that the company would deal with the higher charges by passing them along to its airline customers.In a call with reporters, Airbus’s chief executive, Guillaume Faury, said the European company was monitoring the U.S. presidential election next week and would be prepared for the possibility of a new 10 percent tariff. Former President Donald J. Trump, the Republican candidate, has made sweeping tariffs a critical plank of his economic platform if he wins.Mr. Faury said any new tariff would be passed along to Airbus’s airline customers, in much the same way that Airbus dealt with a tariff that Mr. Trump put on European aircraft in 2020 as part of a long-running airplane subsidy dispute.“So that’s something we will be discussing with our customers” if necessary, Mr. Faury said. “But it puts them in a difficult place of adding an additional cost on what they have ordered and what they’re procuring,” he said. “That’s basically mainly a decision of the state that has to be borne by the companies.”He added: “So we are prepared. We know what it feels like. We don’t believe that’s helping aviation and the competitiveness of the airlines and the aviation industry, but it’s something we would be able to manage.”Airbus on Wednesday announced a 22 percent jump in its net profit for the first nine months of the year despite major problems in its supply chain. Mr. Faury said that Airbus’s net profit rose to 983 million euros, or $1.1 billion, through September, and that its third-quarter adjusted earnings before interest and taxes were €1.4 billion.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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    Exploding Pagers Deliver a Supply Chain Warning

    The attacks on Hezbollah in Lebanon are likely to generate greater momentum for moving factory production closer to home.The lethal detonation of hand-held pagers and walkie-talkies used by Hezbollah militants this week in Lebanon demonstrated powerful spycraft, but it also raised questions about a gaping vulnerability in the global supply chain.That chain is astonishingly complex. So complex that it is probably beyond the powers of governments, corporations and other interested institutions to police. Even the most sophisticated participants are often unclear on who they are relying on for critical parts and raw materials, or where the risks lie.The clear lesson of the supply chain upheavals that accompanied the pandemic was that the longer the journey entailed in making any product, the greater the chance that something might go awry, inflicting delay and higher costs.Now there’s a potent yet related concern: The more complicated the journey, the greater the exposure to mischief.Every movement along the way, and every additional company brought into the manufacturing process represents an opportunity for those pursuing violent agendas to insinuate themselves into the works and weaponize the product.“Companies must decide which level of security must be implemented in their supply chains,” Hannah Kain, the chief executive of ALOM, a global supply chain company, told DealBook. “We just moved several notches out on the paranoia scale.”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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    Backlash Erupts Over Europe’s Anti-Deforestation Law

    Leaders around the world are asking the European Union to delay rules that would require companies to police their global supply chains.The European Union has been a world leader on climate change, passing groundbreaking legislation to reduce noxious greenhouse gasses. Now the world is pushing back.Government officials and business groups around the globe have jacked up their lobbying in recent months to persuade E.U. officials to suspend a landmark environmental law aimed at protecting the planet’s endangered forests by tracing supply chains.The rules, scheduled to take effect at the end of the year, would affect billions of dollars in traded goods. They have been denounced as “discriminatory and punitive” by countries in Southeast Asia, Latin America and Africa.In the United States, the Biden administration petitioned for a delay as American paper companies warned that the law could result in shortages of diapers and sanitary pads in Europe. In July, China said it would not comply because “security concerns” prevent the country from sharing the necessary data.Last week, the chorus got larger. Cabinet members in Brazil, the director general of the World Trade Organization and even Chancellor Olaf Scholz of Germany — leader of the largest economy in the 27-member European Union — asked the European Commission’s president to postpone the impending deforestation regulations.The uproar underscores the bruising difficulties of making progress on a problem that most everyone agrees is urgent: protecting the world’s population from devastating climate change.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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    The Changing Supply Chain

    We explore why commerce has changed — and how companies and governments are reacting.For decades, major companies have behaved as if geographic distance were almost irrelevant. A factory in China was the same as a factory in Michigan. The internet, container shipping and international trading arrangements had supposedly shrunk the globe.No longer. The pandemic and geopolitical upheavals have exposed the risks of depending on faraway industry to make critical things like computer chips, protective gear and medicines.I recently wrote a book on this topic, “How the World Ran Out of Everything.” I’ll use today’s newsletter to help you understand why commerce has changed — and how companies and governments are reacting.The pandemic shockThe emergence of Covid in China ended the previous version of globalization. Quarantines shut Chinese factories at the same time that Western consumers, stuck in lockdown, ordered more manufactured goods like exercise equipment and electronic gadgets.This combination of reduced supply and surging demand made other countries realize that they had become heavily dependent on a single nation — China — for many items, including medical supplies. Covid eventually faded from the headlines, but policymakers and business executives in the United States and Europe faced pressure to diminish their reliance on China.A central reason for concern was the rise of geopolitical tensions. China wasn’t merely the world’s factory; it is also an autocracy that, under President Xi Jinping, has become more aggressive in asserting global influence. Xi, for instance, has been vocal about bringing Taiwan under China’s control, using force if necessary. Taiwan is the dominant manufacturer of the most advanced varieties of computer chips.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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    U.S. Creates High-Tech Global Supply Chains to Blunt Risks Tied to China

    The Biden administration is trying to get foreign companies to invest in chip-making in the United States and more countries to set up factories to do final assembly and packaging.If the Biden administration had its way, far more electronic chips would be made in factories in, say, Texas or Arizona.They would then be shipped to partner countries, like Costa Rica or Vietnam or Kenya, for final assembly and sent out into the world to run everything from refrigerators to supercomputers.Those places may not be the first that come to mind when people think of semiconductors. But administration officials are trying to transform the world’s chip supply chain and are negotiating intensely to do so.The core elements of the plan include getting foreign companies to invest in chip-making in the United States and finding other countries to set up factories to finish the work. Officials and researchers in Washington call it part of the new “chip diplomacy.”The Biden administration argues that producing more of the tiny brains of electronic devices in the United States will help make the country more prosperous and secure. President Biden boasted about his efforts in his interview on Friday with ABC News, during which he said he had gotten South Korea to invest billions of dollars in chip-making in the United States.But a key part of the strategy is unfolding outside America’s borders, where the administration is trying to work with partners to ensure that investments in the United States are more durable.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