Trump says he may soon increase car tariffs to push more US production
"I might go up with that tariff in the not too distant future," Trump said at a White House event.
"The higher you go, the more likely it is they build a plant here."
Carmakers have been pressing the White House to reduce the 25% tariffs Trump imposed on cars. The Detroit Three carmakers have criticised a deal that would cut tariffs on British car imports but not on Canada or Mexico production.
Trump cited recent investment announcements, including GM saying this week it plans to invest $4bn (R71,882,393,200) in three US plants and move some SUV production from Mexico. He also noted a $21bn (R377,382,600,000) Hyundai investment announced in March, including a new US steel plant.
"They wouldn't have invested 10c if we didn't have tariffs, including for manufacturing American steel, which is doing great," Trump said.
Mexico said last month cars assembled in Mexico and exported to the US will face an average tariff of 15%, not 25%, because Washington is giving carmakers reductions for the value of US content.
Carmakers are facing increasing cost pressures stemming from tariffs. In recent weeks, Ford Motor and Subaru of America have hiked prices on some models due to higher costs from Trump's tariffs. In May, Ford estimated tariffs would cost it about $1.5bn (R26,939,413,200) in adjusted earnings.
GM said last month it had a tariff exposure of between $4bn (R71,882,393,200) and $5bn, including about $2bn (R35,942,920,000) on the more affordable vehicles GM imports from South Korea, where it makes entry-level Chevrolet and Buick models.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
TimesLIVE
a few seconds ago
- TimesLIVE
Chinese cars nearly double their European market share in 2025
Car sales across Europe declined in June, with a 4.4% year-on-year drop to 1.25-million vehicles, data from JATO Dynamics showed on Wednesday. While overall demand softened, Chinese automakers continued to gain ground, taking a record market share and squeezing several established European brands, the research data showed. Chinese automakers are expanding in Europe, breaking into a market traditionally dominated by European and American brands supported by their cheaper pricing amid a shift towards electric vehicles. This has stoked trade tensions between Brussels and Beijing, including a row over EU tariffs on Chinese-made EVs, imposed to protect European producers. Chinese brands nearly doubled their combined share of the European market to 5.1% in the first half of 2025, just shy of Mercedes-Benz's 5.2%, the report said. Registrations of Chinese vehicles surged 91% since the start of the year. BYD, Jaecoo, Omoda, Leapmotor and Xpeng were the five names fuelling the surge, with BYD alone registering 70,500 units in the first six months of 2025, a 311% jump from a year ago. Stellantis saw the steepest market share decline among major automakers, to 15.3% from 16.7% a year earlier. The second biggest decline came from Tesla, to 1.6% in the half-year period versus 2.4% last year. Registrations of battery electric vehicles (BEV) surpassed one million for the first time in the first half, with a 25% rise to 1.19-million units — 17.4% of the market. 'Persistently high prices, geopolitical and economic tensions with Europe's trading partners and the postpandemic market reality are behind the decline,' Felipe Munoz, global analyst at JATO Dynamics, said. 'The updated Tesla Model Y has so far failed to provide the expected sales boost for the brand,' Munoz said. 'At the same time, competition from BYD and Volkswagen Group is making it harder for Tesla to maintain its leadership position.'
The Citizen
31 minutes ago
- The Citizen
The smart move: How having life cover when you're young is a power play for your future
While living benefits are important, it is still important to have life cover if you have parent, child dependants or debt. Concerts, weddings, and wild adventures – your crew is making memories. What about your future? Life insurance may not be on your radar yet, but locking it in early could be the smartest financial decision you ever make. This Savings Month (July), Discovery Life shares insights on why young professionals should consider the invaluable benefits of life cover. When you're in your early 20s to mid-30s, life insurance is probably the last thing on your mind. It's easy to think, 'I'll deal with that later'; 'I already have cover through work'; or 'I'm healthy now, so I'll wait'. However, waiting for 'later' could come at a large cost to those with the majority of their future earnings still ahead of them. Do you have a plan if you're no longer able to earn a salary due to a life-changing health diagnosis or a permanent disability? How would you pay your rent or bond, for groceries, medical aid, car and family responsibilities? 'What many young people are unaware of is that life insurance offers far more than just cover that pays out when someone passes away. Life insurance is an incredibly powerful tool and can be a financial safety net if a severe illness or disability stops an individual from being able to earn an income,' says Gareth Friedlander, Discovery Life Deputy CEO. Younger than 30? You're probably underinsured A 2022 Association for Savings and Investment South Africa (ASISA) Life and Disability Insurance Gap Study revealed that the average income earner aged 30 and younger is underinsured. This means they will be unable to maintain their own, or their dependents' current lifestyle if they become disabled or pass away. The average income earner aged 30 and younger earns a little over R10,000 per month, but typically needs more than R2.7 million in disability cover to maintain their standard of living post claim. On average, they only have disability cover of around R1 million, leaving an insurance gap of R1.7 million. 'The insurance gap for South Africans under 30 is concerning,' says Friedlander. 'Having holistic life cover in place that includes income protection, severe illness cover, and disability cover when you're young is one of the smartest things you can do.' How living benefits are an insurance lifeline for young people 'Along with paying out an insured amount to your loved ones if you pass away, life insurance can also protect you against financial risk if something unpredictable happens while you're alive,' explains Friedlander. The three main 'living benefits' are income protection, severe illness cover, and disability cover. Income protection – This benefit pays you a regular income if you are unable to work due to injury, illness or disability. Severe illness cover – Severe illness cover pays out a lump sum based on the severity level of the illness and can be used to cover costs such as treatment costs and lifestyle modifications. Disability cover – Disability cover pays out a lump sum if you become disabled. It can help cover any associated costs such as buying or maintaining specialised medical equipment, lifestyle modifications or settling debt. Alarmingly, severe illnesses like cancer are increasingly affecting younger people. Over the past 30 years, cancer rates in the G20 nations (which includes South Africa) have increased faster for 25 to 29-year-olds than any other age group – by 22% between 1990 and 2019. This is according to the Financial Times, which analysed data from the Institute for Health Metrics and Evaluation at the University of Washington School of Medicine. Discovery Life's Claims Experience for the 2024 calendar year shows that for severe illness claims, cancer was the leading claim cause at 41%, with heart and artery claims next at 16%, followed by nervous system claims at 13%. Of the severe illness cancer claims, skin cancer was the top cause among men aged 40 and younger (44%), while breast cancer accounted for 43% of cancer claims among women aged 40 and younger. Cancer was also the largest cause of disability claims in this age group (29%). Friedlander adds that two in five income protection claims were paid to clients aged 40 or younger in 2024. One in four of these were for permanent conditions. However, these permanent claims made up 67% of the total rand amount paid out. This highlights the value of income protection, especially for permanent claims where these clients will receive an income going forward. Musculoskeletal claims make up almost one-third of these claims and include, for example, injuries to or surgery for the back and neck, ankles, hands, etc. While living benefits are important, it is still important to have life cover where people have parent or child dependents or debt. Of the death claims in 2024 for those aged 40 and younger, motor vehicle accidents (18%) were the largest cause, followed by heart and artery conditions (16%), and then cancer and trauma, each contributing 14%. For these younger ages, 42% of life cover claims were due to unnatural deaths, highlighting the uncertainty of life. 'Taken altogether, these insights highlight the growing importance of holistic life cover for young people that includes living benefits,' notes Friedlander. The younger and healthier you are, the cheaper your premiums 'Young people also need to know that life insurance premiums are mostly determined by age and health. The younger and healthier you are when you apply, the cheaper your cover is,' explains Friedlander. When you take out life insurance at younger ages, your risk is lower, and you can spread the payments over a longer term. This means that your premiums at earlier ages subsidise your premiums later, resulting in more sustainable premiums at older ages. Waiting to take out cover when you're older, or after you're diagnosed with a chronic condition or severe illness, means higher premiums or potential exclusions from cover entirely. 'Not only does getting life cover when you're young protect your future self and your loved ones, but it also sets a solid foundation for long-term financial wellbeing. Getting life cover when you're young isn't just about planning for the worst. It's about making a confident move that secures your financial journey and your ability to protect what's most important to you. Future you will thank you,' concludes Friedlander. Ready to future-proof your financial plan? Learn more about Discovery Life's suite of protective cover and benefits that reward healthy living and safeguard your financial future.
The Citizen
an hour ago
- The Citizen
US moves closer to sanctions on ANC leaders: Ordinary citizens shouldn't be punished
US moves closer to sanctions on ANC leaders: Ordinary citizens shouldn't be punished – AfriForum Tensions between South Africa and the United States have escalated after a US congressional committee approved a bill that could pave the way for sanctions against ANC officials and senior members of government. According to The Witness, the US–South Africa Bilateral Relations Review Act of 2025, introduced by Republican congressman Ronny Jackson in April, was passed by the House Foreign Affairs Committee this week with minor amendments, bringing it closer to a full vote in the House of Representatives. The bill calls for a review of the entire relationship between the two nations, citing South Africa's growing alignment with 'malign actors', including Hamas, China and Russia. It also seeks to identify South African officials eligible for sanctions. Jackson, a vocal ally of US President Donald Trump, said on social media: 'The days of allowing our so-called 'allies' to walk all over us are over!' AfriForum welcomes progress AfriForum welcomed the development, saying it supports 'targeted sanctions' rather than blanket penalties on the country. 'Ordinary citizens should not be punished for the extremism and corruption of politicians,' said Ernst van Zyl, the organisation's head of public relations. ANC's response Deputy secretary-general Nomvula Mokonyane said the party was prepared to 'sacrifice' in the name of justice and sovereignty. 'Throughout our struggle, we know that leaders had to sacrifice. We will continue to pay the price of standing for justice, humanity, equality and the rule of law,' she said. She added that ANC allies, including Cuba, had been sanctioned by the US, but the party would not compromise. 'We will continue to speak for ourselves. But who are we when it was just a few years ago that Nelson Mandela was removed from the list of terrorists? The struggle continues.' Relations between the US and South Africa have soured in recent months under Trump's second term. In May, Trump revoked aid funding to South Africa and imposed 30% tariffs on all SA exports to the US, citing what he claimed was a 'persistent trade deficit'. The tariffs take effect from August 1. Additionally, former SA ambassador Ebrahim Rasool was expelled earlier this year and has not been replaced. The US reportedly rejected Mcebisi Jonas as a special envoy, further straining ties. Trade union Solidarity has called on President Cyril Ramaphosa to urgently repair diplomatic relations and recommit to a non-aligned stance. 'This must include co-operation on terrorism, military and intelligence matters,' said Solidarity's Jaco Kleynhans. Solidarity is also lobbying the US government directly and plans to meet with US lawmakers before the final vote on the bill. The Presidency has not yet issued a formal response to the bill's advancement. Breaking news at your fingertips… Follow Caxton Network News on Facebook and join our WhatsApp channel. Nuus wat saakmaak. Volg Caxton Netwerk-nuus op Facebook en sluit aan by ons WhatsApp-kanaal. Read original story on At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
