US President Donald Trump’s decision to impose 25 per cent tariffs on all imported vehicles and parts is expected to drive up car prices for American consumers, while disrupting supply chains for the industry across North America.
Starting April 3, new tariffs will be levied on complete vehicles and parts entering the US. The move will not only affect foreign car makers but also American companies that use imported components, including Ford Motor and General Motors, which carry out some manufacturing in Canada and Mexico.
About half of all cars sold in America last year were imported, according to research firm GlobalData.
“It's hard not to interpret this as anything but a cue for higher prices and lower growth, with a soft landing becoming more complicated. Countries most exposed to the new auto tariffs are Slovakia, Mexico, South Korea and Japan,” said Prashant Newnaha, senior Asia-Pacific rates strategist at TD Securities in Singapore.
Shares of General Motors slumped 6.2 per cent in after-hours trading, while Ford was down nearly 5 per cent. The US-listed shares of Chrysler-parent Stellantis dropped by 4 per cent. Shares of Tesla, which makes all cars sold in the US locally, were down 1.3 per cent.
In Asia, Toyota Motor's stock fell by 2.6 per cent, Honda Motor's by 2.8 per cent and Hyundai Motor's by more than 4 per cent.
The US car market recorded continued growth in new-car sales throughout last year, recovering from pandemic-era lows. That was driven by increased vehicle availability, more attractive financial incentives and a significant rise in consumer interest in hybrid models.
New vehicle sales reached 15.9 million last year, up 2.2 per cent from 2023, and the highest since 2019, according to data from Wards Intelligence.
Car makers initially expected strong sales to continue this year, but the latest tariffs and the removal of tax credits for electric vehicles have increased uncertainty.
“The move, aimed at turbocharging domestic car manufacturing, will almost certainly backfire,” said Nigel Green, chief executive of global financial advisory company deVere Group. “It will dent consumer confidence and slow US growth – and it will impact the global economy, compromising America’s credibility as a trading partner."
The news has sent shock waves across global markets. Japan's Topix was down 0.50 per cent and Australia's S&P/ASX 200 was 0.38 per cent lower, but Hong Kong's Hang Seng and India’s BSE Sensex Index were up nearly 1 per cent each at 10.08am UAE time on Thursday.
The S&P 500, which tracks the performance of 500 large-cap US companies, closed 1.2 per cent lower on Wednesday. Equity-index futures for the S&P 500 were up 0.1 per cent, while contracts for Nasdaq 100 were slightly lower.
Supply chain challenges
Unlike previous tariff announcements, which were mostly temporary negotiation tactics, this one is likely to be sustained for a longer period, although there could be exemptions for US car makers, said Chuck Carlson, chief executive of Horizon Investment Services.
"I could see the US auto makers getting some exemptions based on their supply chains. But I think [Mr Trump] may want to see how this works out as opposed to stopping it in two or three days ... this particular tariff might have legs in terms of its longevity," he added.
The tightly connected car industry of the US, Canada and Mexico – shaped by decades of trade deals, such as the North American Free Trade Agreement and the United States-Mexico-Canada Agreement – relies on complex supply chains, where parts and vehicles cross borders several times. This makes production across North America highly vulnerable to disruptions.
The average percentage of American and Canadian parts in cars sold in the US dropped from 38 per cent in 2007 to 18 per cent in 2023, according to an allamerican.org report last year.
The report, which analysed manufacturer data, found a consistent trend of low American and Canadian content in vehicles sold in the US. Among major car makers, Tesla led with 65 per cent, followed by Honda at 60 per cent.
In contrast, traditional American manufacturers ranked lower, with General Motors at 41 per cent, Ford at 30 per cent and Chrysler at 23 per cent. They were behind foreign brands including Volkswagen, Subaru and Nissan.
In a statement released on Wednesday, American Automakers, an industry body consisting of Ford, GM and Stellantis, said tariffs should be introduced in a way that avoids raising prices for consumers and "preserves the competitiveness" of the integrated North American car manufacturing sector.
Tesla impact
Mr Trump has said the tariffs could benefit Tesla, but affirmed that Elon Musk, the company's chief executive and a close political ally, had no input on the tariff decisions.
However, Mr Musk has said tariffs will affect the electric vehicle maker, which is the largest car manufacturer in the world in terms of market value.
"Important to note that Tesla is not unscathed here. The tariff impact on Tesla is still significant," Mr Musk said in a post on X.
"This will affect the price of parts in Tesla cars that come from other countries," he wrote in a separate post. "The cost impact is not trivial."
Tesla's shares have dropped by more than 28 per cent since the start of the year, as demand for its electric cars weakens amid backlash over Mr Musk's far-right political remarks and the emergence of cheaper options.
In numbers: China in Dubai
The number of Chinese people living in Dubai: An estimated 200,000
Number of Chinese people in International City: Almost 50,000
Daily visitors to Dragon Mart in 2018/19: 120,000
Daily visitors to Dragon Mart in 2010: 20,000
Percentage increase in visitors in eight years: 500 per cent
Zayed Sustainability Prize
UAE currency: the story behind the money in your pockets
Conflict, drought, famine
Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024.
It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine.
Dr Miriam Bradley, senior lecturer in humanitarian studies at the University of Manchester, has argued that, by the early 1980s, “several government policies combined to cause, rather than prevent, a famine which lasted from 1983 to 1985. Mengistu’s government imposed Stalinist-model agricultural policies involving forced collectivisation and villagisation [relocation of communities into planned villages].
The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a “biblical famine” and containing graphic images of thousands of people, including children, facing starvation.
Band Aid
Bob Geldof, singer with the Irish rock group The Boomtown Rats, formed Band Aid in response to the horrific images shown in the news broadcasts.
With Midge Ure of the band Ultravox, he wrote the hit charity single Do They Know it’s Christmas in December 1984, featuring a string of high-profile musicians.
Following the single’s success, the idea to stage a rock concert evolved.
Live Aid was a series of simultaneous concerts that took place at Wembley Stadium in London, John F Kennedy Stadium in Philadelphia, the US, and at various other venues across the world.
The combined event was broadcast to an estimated worldwide audience of 1.5 billion.
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
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Profile
Company: Justmop.com
Date started: December 2015
Founders: Kerem Kuyucu and Cagatay Ozcan
Sector: Technology and home services
Based: Jumeirah Lake Towers, Dubai
Size: 55 employees and 100,000 cleaning requests a month
Funding: The company’s investors include Collective Spark, Faith Capital Holding, Oak Capital, VentureFriends, and 500 Startups.
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
Killing of Qassem Suleimani
LAST-16 EUROPA LEAGUE FIXTURES
Wednesday (Kick-offs UAE)
FC Copenhagen (0) v Istanbul Basaksehir (1) 8.55pm
Shakhtar Donetsk (2) v Wolfsburg (1) 8.55pm
Inter Milan v Getafe (one leg only) 11pm
Manchester United (5) v LASK (0) 11pm
Thursday
Bayer Leverkusen (3) v Rangers (1) 8.55pm
Sevilla v Roma (one leg only) 8.55pm
FC Basel (3) v Eintracht Frankfurt (0) 11pm
Wolves (1) Olympiakos (1) 11pm
The specs: 2018 Nissan Patrol Nismo
Price: base / as tested: Dh382,000
Engine: 5.6-litre V8
Gearbox: Seven-speed automatic
Power: 428hp @ 5,800rpm
Torque: 560Nm @ 3,600rpm
Fuel economy, combined: 12.7L / 100km
More from Neighbourhood Watch:
Notable salonnières of the Middle East through history
Al Khasan (Okaz, Saudi Arabia)
Tamadir bint Amr Al Harith, known simply as Al Khasan, was a poet from Najd famed for elegies, earning great renown for the eulogy of her brothers Mu’awiyah and Sakhr, both killed in tribal wars. Although not a salonnière, this prestigious 7th century poet fostered a culture of literary criticism and could be found standing in the souq of Okaz and reciting her poetry, publicly pronouncing her views and inviting others to join in the debate on scholarship. She later converted to Islam.
Maryana Marrash (Aleppo)
A poet and writer, Marrash helped revive the tradition of the salon and was an active part of the Nadha movement, or Arab Renaissance. Born to an established family in Aleppo in Ottoman Syria in 1848, Marrash was educated at missionary schools in Aleppo and Beirut at a time when many women did not receive an education. After touring Europe, she began to host salons where writers played chess and cards, competed in the art of poetry, and discussed literature and politics. An accomplished singer and canon player, music and dancing were a part of these evenings.
Princess Nazil Fadil (Cairo)
Princess Nazil Fadil gathered religious, literary and political elite together at her Cairo palace, although she stopped short of inviting women. The princess, a niece of Khedive Ismail, believed that Egypt’s situation could only be solved through education and she donated her own property to help fund the first modern Egyptian University in Cairo.
Mayy Ziyadah (Cairo)
Ziyadah was the first to entertain both men and women at her Cairo salon, founded in 1913. The writer, poet, public speaker and critic, her writing explored language, religious identity, language, nationalism and hierarchy. Born in Nazareth, Palestine, to a Lebanese father and Palestinian mother, her salon was open to different social classes and earned comparisons with souq of where Al Khansa herself once recited.
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Scoreline
Abu Dhabi Harlequins 17
Jebel Ali Dragons 20
Harlequins Tries: Kinivilliame, Stevenson; Cons: Stevenson 2; Pen: Stevenson
Dragons Tries: Naisau, Fourie; Cons: Love 2; Pens: Love 2
TOUR RESULTS AND FIXTURES
June 3: NZ Provincial Barbarians 7 Lions 13
June 7: Blues 22 Lions 16
June 10: Crusaders 3 Lions 12
June 13: Highlanders 23 Lions 22
June 17: Maori All Blacks 10 Lions 32
June 20: Chiefs 6 Lions 34
June 24: New Zealand 30 Lions 15
June 27: Hurricanes 31 Lions 31
July 1: New Zealand 21 Lions 24
July 8: New Zealand v Lions
PREMIER LEAGUE STATS
Romelu Lukaku's goalscoring statistics in the Premier League
Season/club/appearances (substitute)/goals
2011/12 Chelsea: 8(7) - 0
2012/13 West Brom (loan): 35(15) - 17
2013/14 Chelsea: 2(2) - 0
2013/14 Everton (loan): 31(2) - 15
2014/15 Everton: 36(4) - 10
2015/16 Everton: 37(1) - 18
2016/17 Everton: 37(1) - 25
if you go
Getting there
Etihad (Etihad.com), Emirates (emirates.com) and Air France (www.airfrance.com) fly to Paris’ Charles de Gaulle Airport, from Abu Dhabi and Dubai respectively. Return flights cost from around Dh3,785. It takes about 40 minutes to get from Paris to Compiègne by train, with return tickets costing €19. The Glade of the Armistice is 6.6km east of the railway station.
Staying there
On a handsome, tree-lined street near the Chateau’s park, La Parenthèse du Rond Royal (laparenthesedurondroyal.com) offers spacious b&b accommodation with thoughtful design touches. Lots of natural woods, old fashioned travelling trunks as decoration and multi-nozzle showers are part of the look, while there are free bikes for those who want to cycle to the glade. Prices start at €120 a night.
More information: musee-armistice-14-18.fr ; compiegne-tourisme.fr; uk.france.fr
From exhibitions to the battlefield
In 2016, the Shaded Dome was awarded with the 'De Vernufteling' people's choice award, an annual prize by the Dutch Association of Consulting Engineers and the Royal Netherlands Society of Engineers for the most innovative project by a Dutch engineering firm.
It was assigned by the Dutch Ministry of Defence to modify the Shaded Dome to make it suitable for ballistic protection. Royal HaskoningDHV, one of the companies which designed the dome, is an independent international engineering and project management consultancy, leading the way in sustainable development and innovation.
It is driving positive change through innovation and technology, helping use resources more efficiently.
It aims to minimise the impact on the environment by leading by example in its projects in sustainable development and innovation, to become part of the solution to a more sustainable society now and into the future.
