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US automakers will get some relief from US President Donald Trump's tariffs, according to a new White House fact sheet. Prior to his new executive order, manufacturers had to pay a 25 percent tariff on any parts used in any US-assembled vehicles. Now, they'll be able to deduct up to an amount equal to 3.75 percent of the price of a new US made car until April 30, 2026, and 2.5 percent until April 30, 2027. In addition, automakers will only be required to pay tariffs on steel or auto parts (not both as before), depending on which is higher.
The new rules reportedly came at the request of manufacturers, who said they need time to move parts production to the US. "We just wanted to help them during this little transition, short term. We didn't want to penalize them," Trump told reporters.
The 3.75 percent figures was reached by multiplying 15 percent of imported parts that make up a vehicle's sale price by the current 25 percent import tax. So if a $40,000 car had $6,000 or 15 percent of imported parts, the manufacturer would effectively pay no tariffs, but any higher percentage of foreign parts would result in some tariff being paid. The White House said the rebates wouldn't cost taxpayers anything since they'd come out of tariffs collected.
The White House pointed out that the US trade deficit on auto parts was $93.5 billion in 2024. A large chunk of those ($19.5 billion worth) came from Canada, and large numbers of US vehicles are also built in that country. However, the reason that US automakers manufacture cars and car parts in Canada is
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During an earnings call, Samsung's chief financial officer Soon-cheol Park told reporters that "ongoing uncertainty surrounding US tariff policies continues to pose a potential risk of demand slowdown." According to Financial Times, Park said that US tariff policies and stronger export controls against artificial intelligence products are expected to have an impact on product demand in the second half of the year. In addition to a downward trend on sales, the company also expects tariffs to raise prices for the components it uses on its mobile phones, which will have further impact on its revenue.
Samsung's call discussed its results for the first quarter of 2025, which ended on March 31. The company posted KRW 79.14 trillion in revenue ($55.6 billion), an all-time quarterly high mostly due to strong Galaxy S25 sales. It also posted KRW 6.7 trillion ($4.7 billion) in profit, which is slightly lower than the previous quarter's KRW 6.5 trillion ($4.6 billion).
Despite the record revenue, Samsung's chip business already took a hit due to tougher US export controls to China on chips used in hardware for artificial intelligence. The division posted KRW 1.1 trillion ($774 million) in operating profit, down from KRW 2.9 trillion ($2 billion) last quarter. Financial Times previously reported that Samsung had a boost in profit in the first quarter of the year thanks to Chinese customers stockpiling memory chips ahead of US tariffs, but the impact of US export restr
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