Is This Elon's Worst Nightmare?

Elon's empire looks doomed - crashing sales, lost tax credits, and media backlash. But behind the scenes, Tesla is about to unleash a breakthrough Forbes calls a "multi-trillion-dollar opportunity." It's not the end - it's the start of a 25,000% AI comeback.

As Trump considers auto tariffs pause, parts exemptions could be key for US industry

ALEXA ST. JOHN
April 15, 2025

DETROIT (AP) -- President Donald Trump hinted that he might temporarily relieve the auto industry from "permanent" tariffs he previously imposed on the business. The president didn't specify how long the potential pause would be or what it would entail, but the auto sector is awaiting how rules might change on 25% tariffs based on U.S. parts, if duties remain on assembled vehicles.

Experts have said short pauses aren't likely to give carmakers enough of an opportunity to adjust their vast global supply chains, though parts exemptions would certainly bolster the industry amid Trump's trade war whiplash.

Trump told reporters Monday that automakers "need a little bit of time because they're going to make them here, but they need a little bit of time. So I'm talking about things like that," referring to relocating production from Canada, Mexico and elsewhere. The news drove global auto stocks up Tuesday.

Matt Blunt, president of the American Automotive Policy Council, which represents domestic auto companies Ford, General Motors and Stellantis, said in a statement: "There is increasing awareness that broad tariffs on parts could undermine our shared goal of building a thriving and growing American auto industry, and that many of these supply chain transitions will take time."

Trump first announced 25% automotive tariffs late March; the tariffs for completed vehicles took effect on April 3, while the parts tariffs were set to start 30 days later.

"The one-month delay is intended to give the U.S. government time to work out rules to exempt the value of automotive parts that contains U.S.-made materials, which will not be subject to the tariffs," according to insights from law firm Foley & Lardner, noting a "carveout" for parts certified under regional trade pact, the U.S.-Mexico-Canada Agreement. The Department of Commerce is expected to determine "a system to calculate non-U.S. content" by May 3.

At the same time, automakers are navigating steel and aluminum imports levies of at least 25%; 25% duties on all goods from Canada and Mexico; 10% global tariffs and reciprocal tariffs around the world -- paused for 90 days, and both of which automotive is exempt from; and tariffs on China at 145%.

The United Auto Workers labor union, and Autos Drive America, which represents foreign automakers, did not respond to requests for comment.

The on-again, off-again tariffs have already wrought havoc for any number of global sectors but especially the auto industry, which relies on a complex network of parts from around the world.

The American and European car industries are "severely affected by tariffs. On top of the 25% tariff imposed on vehicles, we are impacted by layer upon layer of additional compounding tariffs including those on aluminum, steel, and parts," Stellantis Chairman John Elkann said in the company's annual general meeting Tuesday, noting at the same time, the Chinese auto market's potential for growth this year.

"But it's not too late if the U.S. and Europe take the necessary urgent actions to promote an orderly transition," Elkann added. "We are encouraged by what President Trump indicated yesterday on tariffs for the car industry."

Though Trump says his tariffs are intended to bolster U.S. auto manufacturing, automakers aren't able to reconfigure their sourcing in short periods of time, experts say.

Because of the nature of the business and the length of time it takes to design product and get manufacturing up and running, it could take years to reevaluate sources of supply and establish new assembly operations.

"Flipping upside down a global supply chain that has been in place for decades cannot happen overnight for the auto industry," Wedbush Securities analyst Dan Ives said in a research note, "and we strongly believe the clear right move would be to focus on finished cars made in the U.S." versus auto parts.

The tariffs as they currently stand are sure to cost automakers billions of dollars, impact new and used vehicle supply and raise prices for car buyers at dealerships by thousands of dollars.

Already, some auto manufacturers have paused operations in Canada and Mexico and temporarily laid off workers in the U.S.

Some have also attempted to get ahead of the impact of tariffs through appeals to customers. In rare moves, Ford, Hyundai, Genesis and Jeep-maker Stellantis began offering employee pricing programs for a limited time to reach buyers before what will most likely be steep price hikes.

Car buyers might be better positioned for an extra few weeks, depending on the latest policy change.

___

Alexa St. John is an Associated Press climate reporter. Follow her on X: @alexa_stjohn. Reach her at ast.john@ap.org.

Continue Reading...

Popular

How Gary Sinise is helping the nonprofit CreatiVets build ‘a place to go when the PTSD hits’

NASHVILLE (AP) — Richard Casper shakes his head as he touches one of the boarded-up windows in the once-abandoned church he plans to transform into a new 24-hour arts center for veterans.

Better Than Bitcoin? (Top Crypto for Less Than $1) - Ad

Over the past 15 years, Bitcoin has outperformed stocks, bonds, and every other asset you could've bought. 2025 is already shaping up to be another banner year, with Bitcoin recently hitting a new all-time high. But there's a better way to profit from this new crypto rally. Most people don't know about it... and yet it's returned over 1,000% in 4 months. This could be the #1 way to invest in crypto right now.

Flight cancellations and delays worsen as government shutdown drags on

NEW YORK (AP) — The pain Americans are facing at airports across the country is expected to get worse this week if Congress is unable to reach a deal to reopen the federal government.

Donald Trump Fueled Bitcoin's Rise Beyond $100,000 — Can BTC Survive His 2028 Exit?

Bitcoin (CRYPTO: BTC) may face its biggest political stress test yet in 2028 when President Donald Trump leaves office and the pro-crypto admin

Buy This Gold Stock Before the New Year - Ad

America is about to see a massive shift in how regular people buy and store gold. Next year, the world's largest gold buyer is expected to launch a new way for everyday Americans to invest in gold with a simple tap on their phone - and it could go live in 2026. When it does, a tiny gold stock trading around $1.60 could explode.

Trump's Tariffs Hit Low-Income Households Hard, September Jobs Report Warning And More: This Week In Economy

This week's economic headlines highlighted the impact of Trump's tariffs, rising utility bill delinquencies, and market concerns ahead of potential Fed rate decisions.

Supreme Court Grants Stay On Texas Congressional Map, AG Ken Paxton Says

The Supreme Court temporarily blocked a lower court's injunction on Texas' new congressional map.

Legally "Skim" $6,361 Into Your Account? - Ad

A former hedge fund manager is now sharing his "Skim Codes" with regular people. They're not stocks. They're not crypto. They're 18-character codes designed to profit from recent market conditions. All you have to do is punch them into an ordinary brokerage account. 84% of these codes have given people the chance to generate cash payouts so far... and his next code is going out any day now.

Meta Allegedly Concealed Evidence Of Social Media Harm, According To Court Filings: Report

Meta Platforms Inc. allegedly hid evidence of social media harm by shutting down a study on Facebook and Instagram's impact on mental health.

Trump attacks ABC News correspondent Mary Bruce in angry response to three sharp questions

NEW YORK (AP) — President Donald Trump denounced ABC News' Mary Bruce as a “terrible reporter” Tuesday and threatened the network's license to broadcast after she asked him three sharp questions at the White House.

Elon's New Device Could Launch Biggest IPO of the Decade - Ad

Elon Musk's new device is being called a "game-changer"-and even the White House is using this tech. Jeff Brown says it could launch Musk's next trillion-dollar company and make early investors rich. You can claim a stake now for as little as $500.

These are the 37 donors helping pay for Trump's $300 million White House ballroom

WASHINGTON (AP) — President Donald Trump says his $300 million White House ballroom will be paid for “100% by me and some friends of mine.”

Trump Withdraws Support For 'Wacky' Marjorie Taylor Greene In Sudden, Fiery Split: 'I Can't Take...'

President Donald Trump said he is withdrawing his endorsement of longtime ally Rep. Marjorie Taylor Greene — here's what happened.

Trump Signs Law to Launch Dollar 2.0 - Ad

Trump just signed law S.1582, unleashing the biggest money shift in 100+ years. For the first time since 1913, private firms - not the Fed - can mint a "Dollar 2.0." Treasury says it could drain $6.6T from banks and pay 10X current savings rates. Early investors in minting firms could see 40X returns by 2032.

At 101, WWII veteran Irving Locker has become a songwriter

NASHVILLE (AP) — In a life filled with milestones, Irving Locker celebrated a new, unexpected one last week: He became a published songwriter.

Warren Buffett Opens Up About The Biggest Investing Blunders Of His Career — Here They Are

Over the decades, the "Oracle of Omaha" has shared candid reflections on his biggest blunders, from emotional decisions to missed opportunities, all of which provide timeless investing insights.

We've Seen This Before... and It Didn't End Well - Ad

Strange events are unfolding in the global financial system. A monetary reset dubbed the "Mar-a-Lago Accord" is quietly in motion, and the financial elite are already taking protective action. If history is any guide, you could lose up to 40% of your wealth in the next two years. Move your money before it's too late.

Amazon Strikes $38B OpenAI Deal, Wedbush Hikes Target To Street-High

Wedbush analysts Dan Ives and Scott Devitt raise the price target on Amazon stock from $330 to a Street high of $340

Jim Cramer: Chipotle Is 'Too Expensive,' Buy This Plane Maker

On "Mad Money," Cramer discusses Henry Schein, Bloom Energy, Tyler Technologies, Boeing and Chipotle Mexican Grill.

"Tech Prophet" Who Predicted the iPhone Now Predicts... - Ad

George Gilder - who predicted the iPhone 17 years early and gave Reagan the first microchip - is making his boldest call yet. He says an American nanotech "super-convergence" could mint more millionaires than any event in recent memory. He's found 3 stocks set to benefit the most.

Coeur Mining's $7 Billion Deal For New Gold Creates $20 Billion Powerhouse

Coeur Mining Inc. (CDE) announced acquisition of New Gold Inc. (NGD) in all-stock deal valued at $7 billion.

This Makes NVIDIA Nervous - Ad

NVIDIA's AI chips use huge amounts of power. But a new chip could cut energy use by 99% and run 10 million times more efficiently. One U.S. company has cornered this market. They control the first commercial foundry in America. At under $20 a share, it's a ground-floor shot at the next tech giant.

AT&T reached a $177M data breach settlement. What consumers should know about claiming their money

NEW YORK (AP) — AT&T has reached a combined $177 million settlement over two . And impacted consumers have a little over a month left to file a claim for their chunk of the money.

Peter Schiff Says Bitcoin Buyers Have Only One (Unlikely) Hope To Bail Them Out

Bitcoin's (CRYPTO: BTC) slide through key support levels has brought long-time critic and gold advocate Peter Schiff back into the spotlight—and he's

Gold Is Being Reintroduced Into the Monetary System - Ad

While the media focuses on political scandals, inflation and coming up with ridiculous acronyms "TACO"... Smart money is tracking a far bigger shift: a gold revaluation is quietly underway. Garrett Goggin, CFA, says this could trigger 100X moves in select miners - and he's identified four with the biggest upside.

Indians who fled a Myanmar cyberscam center are being flown home from Thailand

MAE SOT, Thailand (AP) — is repatriating on Thursday the first batch of hundreds of its nationals who last month fled to Thailand from Myanmar, where most had been working at a .

Qatar Airways to sell its holdings in Hong Kong's Cathay Pacific for $896 million

DUBAI, United Arab Emirates (AP) — Qatar Airways will sell its stake in Hong Kong-based Cathay Pacific Airways in a share buyback valued at $896 million, the companies announced, ending the Qatari carrier's .

Is This Elon's Worst Nightmare? - Ad

Elon's empire looks doomed - crashing sales, lost tax credits, and media backlash. But behind the scenes, Tesla is about to unleash a breakthrough Forbes calls a "multi-trillion-dollar opportunity." It's not the end - it's the start of a 25,000% AI comeback.

Trump's 50-Year Mortgage Plan, Sanders Critiques Musk, Trump Backs Crypto And More: This Week In Politics

Weekend headlines: Trump's 50-year mortgage plan, Sanders criticizes Musk, Trump backs crypto, Scaramucci on NYC mayor, Mamdani challenges Trump.

Investigators look into 'repeating bell' heard during takeoff of UPS cargo plane that crashed

LOUISVILLE, Ky. (AP) — A repeating bell sounded in the cockpit for 25 seconds as pilots tried to control a UPS cargo plane that caught fire, had an engine fall off and this week in Louisville, Kentucky, a National Transportation Safety Board member said Friday.

Better Than Bitcoin? (Top Crypto for Less Than $1) - Ad

Over the past 15 years, Bitcoin has outperformed stocks, bonds, and every other asset you could've bought. 2025 is already shaping up to be another banner year, with Bitcoin recently hitting a new all-time high. But there's a better way to profit from this new crypto rally. Most people don't know about it... and yet it's returned over 1,000% in 4 months. This could be the #1 way to invest in crypto right now.

TSLA, PLTR, IREN And More: 5 Stocks That Dominated Investor Buzz This Week

Retail investors talked up five hot stocks this week (Nov. 3–7) on X and Reddit's r/WallStreetBets: TSLA, PLTR, MSTR, AMD, IREN.

Buy This Gold Stock Before the New Year - Ad

America is about to see a massive shift in how regular people buy and store gold. Next year, the world's largest gold buyer is expected to launch a new way for everyday Americans to invest in gold with a simple tap on their phone - and it could go live in 2026. When it does, a tiny gold stock trading around $1.60 could explode.

OpenAI and Amazon sign $38B deal for AI computing power

SEATTLE (AP) — OpenAI and Amazon have signed a $38 billion deal that enables the ChatGPT maker to run its artificial intelligence systems on Amazon's cloud computing services.

Taylor Swift, Elon Musk, Donald Trump, MrBeast — Robinhood Just Made Their Mojo Tradable

Robinhood has new prediction markets for its customers, with a focus on the entertainment sector. Here are some of the new markets.

Legally "Skim" $6,361 Into Your Account? - Ad

A former hedge fund manager is now sharing his "Skim Codes" with regular people. They're not stocks. They're not crypto. They're 18-character codes designed to profit from recent market conditions. All you have to do is punch them into an ordinary brokerage account. 84% of these codes have given people the chance to generate cash payouts so far... and his next code is going out any day now.

Peloton Stock Rallies After Q1 Earnings: Here's Why

Peloton stock climbs after the company released its first-quarter earnings report after Thursday's closing bell.

Trending Now

Information, charts or examples are for illustration and educational purposes only and not for individualized investment management This message contains commercial elements, such as advertising. We only send these offers to those who have opted in to our newsletter. Past performance is not indicative of future results. For these reasons we strongly suggest trading in a DEMO/Simulated account. The information provided by us is for educational and informational purposes only. We make no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended and have not determined if the statements and opinions of the advertiser are accurate, correct or truthful. If you use, act upon or make decisions in reliance on information contained or any external source linked within it, you do so at your own peril and agree to hold us, our officers, directors, shareholders, affiliates and agents without fault.

Copyright systemtrading.ca
Privacy Policy | Terms of Service