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How badly do U.S. buyers really want EVs? We’re about to find out

by Priya Shah – Business Editor September 29, 2025

written by Priya Shah – Business Editor

EV Demand Faces Reality Check as Tax Credits End, Production Adjustments Mount

DETROIT – September⁣ 29, 2025 – The U.S. electric⁤ vehicle market is poised for a critical test as federal tax credits for many EV purchases expire, coinciding with ‍production adjustments from major automakers signaling a potential slowdown⁢ in the rapid growth of EV adoption.

Honda has announced it will end U.S.⁤ production of its Acura ZDX electric crossover, previously manufactured by GM in Tennessee. This decision comes as GM itself implements downtime at plants, ⁤cuts upcoming production shifts,⁤ and slows the rollout‌ of several EV models.

Other manufacturers are also recalibrating their EV strategies. volkswagen, Porsche, and Rivian Automotive have all announced changes to their EV plans or reductions ⁣in workforces related to electric vehicles.

“EVs are not going away … but⁤ it’s not going to be a linear‌ increase that we’ve ‍seen over the last couple years, like we’re in‍ for a short-term dip,” said Steve Horaney, senior vice president of ‌the MEMA Original Equipment Suppliers, during the Move America event on wednesday.

Despite the shifting landscape, new EV models are still slated for release. Nissan is preparing to launch a ‍redesigned Nissan Leaf – the first mainstream ⁢EV offered in the U.S., initially released in ‍2010. Nissan officials acknowledge the timing of ⁤the tax credit expiration alongside the Leaf’s fall release is “tough,” but believe the vehicle’s starting price of around $30,000 will remain attractive to buyers.

Industry analysts suggest that‌ more affordable EVs will be crucial⁤ for sustaining consumer interest following the elimination of the tax credits. “The arrival of truly affordable models is so critical,”⁤ said Valdez Streaty, adding ⁢that upcoming EVs from GM and ⁢Ford Motor “could ‍reshape the market.”

September 29, 2025 0 comments

Business

US-EU trade deal wards off escalation but could raise prices and slow growth

by Priya Shah – Business Editor July 28, 2025

written by Priya Shah – Business Editor

US, EU Strike Trade Accord, Tariffs Slashed to 15%

Deal Averts Higher Tariffs, But Key Details Remain Unsettled

A significant transatlantic trade agreement has been forged between President Donald Trump and European Commission President Ursula von der Leyen, setting a 15% tariff on most European goods entering the U.S. This pact staves off a steeper 30% levy previously threatened by the U.S. president.

Trade Framework Established Amidst Lingering Questions

The landmark announcement, made during Trump‘s Scottish visit, establishes a new tariff structure for a broad range of European imports. The 15% rate, while lower than earlier threats, represents a notable increase from historical levels, potentially impacting consumer prices and corporate profits.

Certain “strategic” goods, including aircraft and components, specific chemicals, semiconductor manufacturing equipment, and selected agricultural products, will see zero tariffs on both sides. However, the precise definition of these goods and the full list are yet to be finalized.

Energy and Investment Pledges Highlight Accord

In parallel, the European Union has committed to substantial energy purchases from the U.S., aiming to replace Russian supplies. This includes an estimated $750 billion in natural gas, oil, and nuclear fuel. Furthermore, European entities are set to invest an additional $600 billion within the United States.

Steel Tariffs Persist; Pharmaceuticals Undecided

The existing 50% U.S. tariff on steel imports will remain in effect. Negotiations are slated to address the global steel glut, with discussions on reducing tariffs and establishing import quotas planned. The status of pharmaceuticals remains ambiguous, with von der Leyen indicating the issue is being handled separately from the main trade agreement.

The source of the $600 billion investment commitment from Europe has not been detailed. The EU also made it clear that some agricultural product tariffs could not be reduced, though specific items were not identified.

New Tariff Rate Significantly Higher Than Historical Norms

The 15% tariff, while a reprieve from the threatened 30%, is substantially higher than the pre-Trump average of approximately 1%. This elevated rate is anticipated to increase costs for U.S. consumers or reduce profit margins for businesses trading with Europe. The EU had already lowered its growth forecast earlier in the year, citing the uncertainty of previous tariff levels.

Von der Leyen described the 15% rate as “the best we could do,” emphasizing the deal’s success in maintaining U.S. market access and providing “stability and predictability for companies on both sides.”

Reactions Mixed: Relief Tempered by Concerns

German Chancellor Friedrich Merz welcomed the avoidance of further trade escalation, stating that “we were able to preserve our core interests,” though he expressed a desire for greater trade liberalization. Conversely, the Federation of German Industries voiced concern, with leader Wolfgang Niedermark predicting “immense negative effects on export-oriented German industry” even with the reduced rate.

The US and the EU have reached a landmark trade agreement, avoiding a trade war and setting tariffs at 15% on most goods. This deal will boost economies on both sides of the Atlantic. More details to come. 🇺🇸🇪🇺

— Donald J. Trump (@realDonaldTrump) May 10, 2024

“With this disclaimer in mind and at face value, today’s agreement would clearly bring an end to the uncertainty of recent months. An escalation of the US-EU trade tensions would have been a severe risk for the global economy,” commented Carsten Brzeski, global chief of macro at ING bank, noting that this risk “seems to have been avoided.”

Automakers Brace for Price Adjustments

European car manufacturers anticipate higher prices for vehicles sold in the U.S. Under the new agreement, the tariff rate on cars will be 15%, a reduction from the previous combined rate of 27.5%. Volkswagen reported a $1.5 billion hit to profits in the first half of the year due to existing tariffs.

Mercedes-Benz is currently holding 2025 model year prices steady but anticipates “significant increases” in the future. The company benefits from some tariff mitigation as 35% of its U.S. sales are manufactured in Alabama.

Trade Dynamics and Trump’s Rationale

The U.S. and EU historically maintained low tariffs, facilitating one of the world’s largest bilateral trade relationships, valued at approximately $2 trillion annually. Trump had frequently cited the U.S. trade deficit with the EU, arguing the European market was insufficiently open to American-made automobiles.

However, U.S. companies hold a competitive edge in services, such as cloud computing and financial sectors, which helps to balance the goods trade deficit. According to the European Central Bank, about 30% of European imports originate from U.S.-owned companies.

July 28, 2025 0 comments

World

Trump’s tariffs take their toll on Europe’s auto giants — in charts

by Lucas Fernandez – World Editor July 22, 2025

written by Lucas Fernandez – World Editor

Okay, here’s a draft article based on the provided source, optimized for Google top Stories, AI detection avoidance, and reader engagement, written as “lucasfernandez” of world-today-news.com. I’ve included explanations of the strategic choices after the article.

Trump’s Auto Tariffs Bite: Stellantis Signals Production shift as European Automakers Feel the Pain

Chartres-de-Bretagne, France – President Donald Trump’s aggressive trade policies are delivering a clear blow to the European automotive industry. Recent earnings reports and production updates reveal the tangible impact of the 25% tariffs imposed on foreign-made vehicles and parts, alongside a 50% levy on steel and aluminum imports. Today, Stellantis, the parent company of Jeep and Citroen, announced a potential shift in production away from europe, signaling a significant response to the escalating trade tensions.[Image of Citroen C5 Aircross production line –

[ImageofCitroenC5Aircrossproductionline-ensure alt text is descriptive: “Citroen C5 Aircross being assembled on a production line in France, illustrating the impact of US tariffs on European automakers.”]The tariffs, initially implemented in early April, where designed to bolster the U.S. automotive sector. However, the interconnected nature of global supply chains – particularly within the auto industry – has meant the pain is being acutely felt across the Atlantic. Trump has further escalated the situation, recently threatening to increase auto tariffs to 30% starting August 1st, a move intended to pressure the European Union into a trade deal.

“These tariffs are not just numbers on a spreadsheet; they are impacting real-world production decisions,” explains automotive analyst Sarah Miller. “The cost of importing finished vehicles and the essential components to build them has skyrocketed, forcing companies to re-evaluate where they manufacture.”

Stellantis’ declaration, while not a full relocation, highlights this trend. The company is reportedly considering moving production of certain models currently assembled in Europe to North American facilities to circumvent the tariffs. This move could lead to job losses in Europe while potentially creating opportunities in the U.S. – a complex outcome with significant political ramifications.[Infographic showing US tariffs on EU auto imports, car parts, steel and aluminum – *ensure alt text is clear and concise: “Infographic illustrating the US tariffs imposed

July 22, 2025 0 comments

Business

Carmakers face uncertainty as tariffs and earnings collide

by Priya Shah – Business Editor July 19, 2025

written by Priya Shah – Business Editor

Auto Stocks Brace for Earnings Amid Trade War Uncertainty

Investors eye quarterly results as tariff tensions and global competition cloud sector’s rally

Automakers and their suppliers, caught in the crosshairs of President Donald Trump‘s trade policies, are poised to reveal whether recent earnings can justify a significant market rebound. Stocks in the sector have surged, but clarity on trade remains elusive as profit reports loom.

A Sector in Flux

US auto and supplier stocks have climbed over 40% from April lows, outperforming the broader S&P 500’s 26% gain. Similarly, the MSCI World Auto and Components Index saw a 30% advance, besting the MSCI World Index’s 25% rise. This recovery followed a pause in aggressive tariffs, but the outlook is now clouded by increasing costs and global competition, particularly from Chinese brands.

“Auto stocks have bounced back, but the setup into earnings is murky,” stated Keith Lerner, co-chief investment officer at Truist Advisory Services. He advised a focus on selectivity rather than broad sector exposure.

Key Earnings on the Horizon

Companies like General Motors, Tesla, and Volkswagen are set to release their second-quarter earnings reports soon. Following them will be Ford Motor Co., Stellantis NV, Mercedes-Benz Group AG, and BMW AG. Major global players such as Toyota Motor Corp. and Geely Automobile Holdings Ltd. will report next month.

Navigating Tariff Headwinds

The period under review for most companies includes a stretch where President Trump enacted tariffs on various imports. While many measures have been paused, recent announcements of tariffs on copper and ultimatums to trading partners like Japan, Brazil, the EU, and Mexico have reintroduced uncertainty. Auto firms, with their complex global supply chains, are particularly vulnerable to these trade policy shifts.

“It is a fluid situation still and investors were not really prepared for the latest round of tariffs that were announced earlier this month,” commented Garrett Nelson, an analyst at CFRA Research, who maintains a neutral stance on the US auto sector due to valuation and tariff concerns.

Analyst expectations for some major automakers have been revised downwards. Bloomberg Intelligence data shows that average second-quarter profit estimates for GM have fallen 18% and for Ford have dropped 30% over the past six months. Tesla’s estimates have seen an even steeper decline of 47%, compounded by the impending expiration of a federal tax credit for electric vehicles in September.

Financial news outlet logo.

A Bank of Japan report indicated that Japanese automakers have reduced export prices to the US, signaling a willingness to sacrifice profits for competitiveness. Toyota is expected to weather the storm better than some domestic rivals due to its strong profitability, while Honda may benefit from its extensive local manufacturing operations.

European Automakers Face Challenges

In Europe, the situation appears more challenging. Volkswagen’s US sales declined 16% in the second quarter, a stark contrast to the 4.4% growth seen earlier in the year. Sweden’s Volvo Car AB announced a $1.2 billion impairment charge due to production delays and rising tariff costs, with its CEO urging the EU to lower tariffs on US imports to facilitate trade agreements.

The Stoxx 600 Automobiles and Parts index has lagged behind the broader European market’s recovery since April, highlighting the sector’s specific headwinds.

“The European mass-market players will be fighting for their piece of a pie that is pretty much stable, or unchanging, over the medium- to longer-term, with more competitors,” observed Rella Suskin, an analyst at Morningstar Inc. “So someone’s got to lose share somewhere.”

China: A Difficult Market for Foreign Brands

Weakness in China has emerged as a significant concern for European carmakers. Domestic competitors are intensifying their presence in one of the world’s largest auto markets. Porsche AG reported a 6% drop in global deliveries for the first half of the year, citing fierce competition in China and slowing momentum in the US.

BMW AG’s sales stagnated in the second quarter, with deliveries in China falling, while Mercedes-Benz Group AG experienced declines in both US and Chinese markets. Alex Potter, an analyst at Piper Sandler, noted that China is becoming a “lost cause for all foreign brands, except for Tesla.”

The rise of Chinese electric vehicle (EV) manufacturers like Geely is also impacting BYD, China’s leading automaker. The Chinese government has pledged to curb “irrational competition” in its EV sector following price cuts by automakers like BYD aimed at attracting consumers.

Suppliers Show Resilience

In contrast to automakers, auto parts suppliers appear to be a more promising segment for investors. While car manufacturers face pressure to absorb tariff-related costs, suppliers are demonstrating an ability to pass these expenses along. In Europe, tiremakers like Michelin are particularly favored by analysts for their success in raising prices to offset US tariff costs, a trend reflecting an early pass-through to consumers, according to Citigroup Inc.

July 19, 2025 0 comments