Latest news with #Cadillacs
Yahoo
37 minutes ago
- Business
- Yahoo
From toys to cars, tariffs hit companies' bottom lines
The numbers are in: Big toy and auto companies are reporting just how much tariffs are costing them. Toymaker Hasbro said in its quarterly earnings call Wednesday that it recorded a $1 billion hit for consumer products just in the second quarter as a result of tariff impacts and its long-term outlook. Though the company is projecting growth overall in 2025 with games performing well, it's expecting consumer products revenue to drop 5%-8% this year because of the import taxes. It anticipates tariffs will make a $60 million dent this year. To mitigate the tariff impacts, Hasbro is working to reduce the U.S. toys and games it gets from China from around 50% now to less than 40% by 2027. And it's planning to bring more production to the United States — something President Donald Trump has pushed companies to do. Meanwhile, its competitor Mattel anticipates tariffs could make a dent this year of up to $100 million. The company said it has adjusted pricing — but didn't specify what the price increases were, which products were affected or when the changes took effect. 'It is the price that is necessary to offset some of the headwinds in addition to the array of a multitude of other actions that we're taking,' Mattel Chief Financial Officer Paul Ruh said. The company says it's working to broaden its supply chain faster and improve on its product sourcing to help mitigate tariff impacts. It doesn't expect any more price hikes this year. And tariffs aren't just affecting toy companies — they're also hitting some of the biggest automakers in the world. General Motors said this week tariffs cost it $1.1 billion in the second quarter. And it's expecting tariffs overall this year could cost it $4 billion to $5 billion. So far, the automaker that produces Chevys, Cadillacs and other brands has eaten that cost, and it's trying to offset some of the impact through cost cuts and investments in the U.S. 'Many of the manufacturing announcements that we made earlier in the quarter about onshoring production here into the U.S. with $4 billion of capital initiatives are going to have an effect as we get 18 to 24 months down the road,' GM CFO Paul Jacobson told CNBC. Stellantis, the maker of Jeep, Chrysler and Dodge, said it expects a $2.7 billion loss in the first half of this year, in part from tariffs. And Volvo just reported a big decline in its second quarter operating profit. It's now planning to add its best-selling XC60 SUV to the production line of its South Carolina plant next year. The auto industry is currently subject to 25% tariffs on imported cars and parts and 50% on steel and aluminum. It's part of an ever-changing patchwork of tariffs as the Trump administration seeks deals with trading partners around the world ahead of its Aug. 1 tariff deadline. The latest: an agreement with Japan setting tariffs at 15% on Japanese imports, less than the 25% Trump had threatened. The American Automotive Policy Council, an industry group representing the Detroit Three automakers General Motors, Ford and Stellantis, is worried that the Japan deal could hurt companies making cars across North America. The 15% Japan tariffs are lower than the 25% on Canada and Mexico, where many American car brands manufacture their cars, trucks, vans and SUVs. 'Any deal that charges a lower tariff for Japanese imports with virtually no U.S. content than the tariff imposed on North American built vehicles with high U.S. content is a bad deal for U.S. industry and U.S. auto workers,' Matt Blunt, president of the American Automotive Policy Council, said in a statement. Commerce Secretary Howard Lutnick pushed back against complaints that U.S. automakers could face higher tariffs than companies making cars fully in Japan. 'That's just so silly,' he said in a CNBC interview. 'The American manufacturers are going to do extremely well in America as long as they build it in America.' Car companies haven't really upped prices yet as a result of tariffs, but that may change. 'What the challenge is going to be for the back half of the year is to figure out, will they continue absorbing a majority of the tariff impact or will we start to see that increase in consumer pricing as they start to try to pass along some of the impact,' said Erin Keating, Cox Automotive executive analyst. Cox Automotive anticipates car prices may rise 4%-8% by the end of the year. It also found that inventory of both new and used cars dropped in July. And tariffs might mean fewer toys on the shelves this holiday season. Hasbro reports some retailers are pausing or slowing down imports of holiday inventory. 'A lot of hot products are going to likely be out of stock this holiday because we're just not going to be able to replenish them because we didn't have the upfront inventory for them,' Hasbro CEO Chris Cocks said. 'So like a Play-Doh Barbie, a Nano-Mals, a Baby Evie. If you're a mom or a dad, you're probably going to want to go and buy that early.' This article was originally published on
NBC News
4 hours ago
- Business
- NBC News
From toys to cars, tariffs hit companies' bottom lines
The numbers are in: Big toy and auto companies are reporting just how much tariffs are costing them. Toymaker Hasbro said in its quarterly earnings call Wednesday that it recorded a $1 billion hit for consumer products just in the second quarter as a result of tariff impacts and its long-term outlook. Though the company is projecting growth overall in 2025 with games performing well, it's expecting consumer products revenue to drop 5%-8% this year because of the import taxes. It anticipates tariffs will make a $60 million dent this year. To mitigate the tariff impacts, Hasbro is working to reduce the U.S. toys and games it gets from China from around 50% now to less than 40% by 2027. And it's planning to bring more production to the United States — something President Donald Trump has pushed companies to do. Meanwhile, its competitor Mattel anticipates tariffs could make a dent this year of up to $100 million. The company said it has adjusted pricing — but didn't specify what the price increases were, which products were affected or when the changes took effect. 'It is the price that is necessary to offset some of the headwinds in addition to the array of a multitude of other actions that we're taking,' Mattel Chief Financial Officer Paul Ruh said. The company says it's working to broaden its supply chain faster and improve on its product sourcing to help mitigate tariff impacts. It doesn't expect any more price hikes this year. And tariffs aren't just affecting toy companies — they're also hitting some of the biggest automakers in the world. General Motors said this week tariffs cost it $1.1 billion in the second quarter. And it's expecting tariffs overall this year could cost it $4 billion to $5 billion. So far, the automaker that produces Chevys, Cadillacs and other brands has eaten that cost, and it's trying to offset some of the impact through cost cuts and investments in the U.S. 'Many of the manufacturing announcements that we made earlier in the quarter about onshoring production here into the U.S. with $4 billion of capital initiatives are going to have an effect as we get 18 to 24 months down the road,' GM CFO Paul Jacobson told CNBC. Stellantis, the maker of Jeep, Chrysler and Dodge, said it expects a $2.7 billion loss in the first half of this year, in part from tariffs. And Volvo just reported a big decline in its second quarter operating profit. It's now planning to add its best-selling XC60 SUV to the production line of its South Carolina plant next year. The auto industry is currently subject to 25% tariffs on imported cars and parts and 50% on steel and aluminum. It's part of an ever-changing patchwork of tariffs as the Trump administration seeks deals with trading partners around the world ahead of its Aug. 1 tariff deadline. The latest: an agreement with Japan setting tariffs at 15% on Japanese imports, less than the 25% Trump had threatened. The American Automotive Policy Council, an industry group representing the Detroit Three automakers General Motors, Ford and Stellantis, is worried that the Japan deal could hurt companies making cars across North America. The 15% Japan tariffs are lower than the 25% on Canada and Mexico, where many American car brands manufacture their cars, trucks, vans and SUVs. 'Any deal that charges a lower tariff for Japanese imports with virtually no U.S. content than the tariff imposed on North American built vehicles with high U.S. content is a bad deal for U.S. industry and U.S. auto workers,' Matt Blunt, president of the American Automotive Policy Council, said in a statement. Commerce Secretary Howard Lutnick pushed back against complaints that U.S. automakers could face higher tariffs than companies making cars fully in Japan. 'That's just so silly,' he said in a CNBC interview. 'The American manufacturers are going to do extremely well in America as long as they build it in America.' Car companies haven't really upped prices yet as a result of tariffs, but that may change. 'What the challenge is going to be for the back half of the year is to figure out, will they continue absorbing a majority of the tariff impact or will we start to see that increase in consumer pricing as they start to try to pass along some of the impact,' said Erin Keating, Cox Automotive executive analyst. Cox Automotive anticipates car prices may rise 4%-8% by the end of the year. It also found that inventory of both new and used cars dropped in July. And tariffs might mean fewer toys on the shelves this holiday season. Hasbro reports some retailers are pausing or slowing down imports of holiday inventory. 'A lot of hot products are going to likely be out of stock this holiday because we're just not going to be able to replenish them because we didn't have the upfront inventory for them,' Hasbro CEO Chris Cocks said. 'So like a Play-Doh Barbie, a Nano-Mals, a Baby Evie. If you're a mom or a dad, you're probably going to want to go and buy that early.'
Qatar Tribune
14-07-2025
- Automotive
- Qatar Tribune
Auto loan interest becomes tax-deductible under Trump's tax cut
Agencies Millions of people receive a federal tax deduction for the interest they pay on home loans. Under President Donald Trump's new tax-cut law, many people for the first time also could claim a tax deduction for interest on their vehicle loans. The new tax break will be available even to people who don't itemize deductions. But there are some caveats that could limit its reach. The vehicles must be new, not used. They must be assembled in the U.S. And the loans must be issued no sooner than this year, to list just a few qualifications. Here are some things to know about the new auto loan interest tax deduction: Trump pledged while campaigning last year to make interest on car loans tax-deductible. He said it would make car ownership more affordable and 'stimulate massive domestic auto production.' The idea made it into the big tax-cut bill passed by Congress, which Trump signed into law July 4. The law allows taxpayers to deduct up to $10,000 of interest payments annually on loans for new American-made vehicles from 2025 through 2028. It applies to cars, motorcycles, sport utility vehicles, minivans, vans and pickup trucks weighing less than 14,000 pounds, a threshold referred to as light vehicles. But it only applies to vehicles purchased for personal use, not for fleets or commercial purposes. The tax break can be claimed starting on 2025 income tax returns. But the deduction phases out for individuals with incomes between $100,000 and $150,000 or joint taxpayers with incomes between $200,000 and $250,000. Those earning more cannot claim the tax break. U.S. automobile dealers sold 15.9 million new light vehicles last year, a little over half of which were assembled in the U.S, according to Cox Automotive. It says around 60% of retail sales are financed with loans. After excluding fleet and commercial vehicles and customers above the income cutoff, an estimated 3.5 million new vehicle loans could be eligible for the tax break this year, if purchasing patterns stay the same, said Jonathan Smoke, chief economist at Cox Automotive. The tax break applies to vehicles assembled in the U.S., no matter where the company making them is headquartered. All Tesla vehicles sold in the U.S. are assembled in this country. But so are all Acura brands, the luxury model of Japanese automaker Honda. Last year, 78% of Ford vehicles sold in the U.S. were assembled in this country, according to Cox Automotive. But customers wanting the tax break will need to pay attention to specific models. While the Ford Mustang is assembled in Michigan, the Mustang Mach-E is built in Mexico. General Motors assembles all of its Cadillacs in the U.S. But just 44% of its Chevrolets sold last year were assembled in the U.S., and just 14% of Buicks, according to Cox Automotive. That's a lower U.S-assembled rate than Honda (60%), Toyota (52%) and Nissan (48%), which all are headquartered in Japan. The average new vehicle loan is about $44,000 financed over six years. Interest rates vary by customer, so the savings will, too. In general, the tax deduction will decline after the initial year, because interest payments on loans are frontloaded while principal payments grow on the back end. At a 9.3% interest rate, an average new vehicle buyer could save about $2,200 on taxes over four years, Smoke said. The tax savings would be less on a loan at 6.5%, which is the rate figured into calculations by the American Financial Services Association, a consumer credit industry trade group. Whereas the tax deduction for home loan interest can be claimed only by people itemizing on their tax returns, Congress wrote the deduction for auto loan interest so that it can apply to all taxpayers, including those claiming the standard deduction. On a tax form, the auto loan deduction will come before the calculation of a taxpayer's adjusted gross income. That's an important distinction, because many states use a taxpayer's federal adjusted gross income as the starting point for figuring their state income taxes. If that income figure is lower, it could reduce the state taxes owed. At Bowen Scarff Ford in Kent, Washington, customers started asking about the auto loan tax deduction before Congress had even taken a final vote on the tax-cut bill, said General Manager Paul Ray. So he decided to promote it on the dealer's website. A website ribbon exclaims: 'CAR LOAN TAX DEDUCTION NOW AVAILABLE' while also promoting an electric vehicle tax credit that is ending soon as a result of Trump's tax-cut law.
Japan Today
13-07-2025
- Automotive
- Japan Today
New tax break for auto loans could save some U.S. buyers thousands of dollars. But will it boost sales?
By DAVID A. LIEB Millions of people receive a federal tax deduction for the interest they pay on home loans. Under President Donald Trump's new tax-cut law, many people for the first time also could claim a tax deduction for interest on their vehicle loans. The new tax break will be available even to people who don't itemize deductions. But there are some caveats that could limit its reach. The vehicles must be new, not used. They must be assembled in the U.S. And the loans must be issued no sooner than this year, to list just a few qualifications. Here are some things to know about the new auto loan interest tax deduction: Trump pledged while campaigning last year to make interest on car loans tax-deductible. He said it would make car ownership more affordable and 'stimulate massive domestic auto production.' The idea made it into the big tax-cut bill passed by Congress, which Trump signed into law July 4. The law allows taxpayers to deduct up to $10,000 of interest payments annually on loans for new American-made vehicles from 2025 through 2028. It applies to cars, motorcycles, sport utility vehicles, minivans, vans and pickup trucks weighing less than 14,000 pounds, a threshold referred to as light vehicles. But it only applies to vehicles purchased for personal use, not for fleets or commercial purposes. The tax break can be claimed starting on 2025 income tax returns. But the deduction phases out for individuals with incomes between $100,000 and $150,000 or joint taxpayers with incomes between $200,000 and $250,000. Those earning more cannot claim the tax break. U.S. automobile dealers sold 15.9 million new light vehicles last year, a little over half of which were assembled in the U.S, according to Cox Automotive. It says around 60% of retail sales are financed with loans. After excluding fleet and commercial vehicles and customers above the income cutoff, an estimated 3.5 million new vehicle loans could be eligible for the tax break this year, if purchasing patterns stay the same, said Jonathan Smoke, chief economist at Cox Automotive. The tax break applies to vehicles assembled in the U.S., no matter where the company making them is headquartered. All Tesla vehicles sold in the U.S. are assembled in this country. But so are all Acura brands, the luxury model of Japanese automaker Honda. Last year, 78% of Ford vehicles sold in the U.S. were assembled in this country, according to Cox Automotive. But customers wanting the tax break will need to pay attention to specific models. While the Ford Mustang is assembled in Michigan, the Mustang Mach-E is built in Mexico. General Motors assembles all of its Cadillacs in the U.S. But just 44% of its Chevrolets sold last year were assembled in the U.S., and just 14% of Buicks, according to Cox Automotive. That's a lower U.S-assembled rate than Honda (60%), Toyota (52%) and Nissan (48%), which all are headquartered in Japan. The average new vehicle loan is about $44,000 financed over six years. Interest rates vary by customer, so the savings will, too. In general, the tax deduction will decline after the initial year, because interest payments on loans are frontloaded while principal payments grow on the back end. At a 9.3% interest rate, an average new vehicle buyer could save about $2,200 on taxes over four years, Smoke said. The tax savings would be less on a loan at 6.5%, which is the rate figured into calculations by the American Financial Services Association, a consumer credit industry trade group. Whereas the tax deduction for home loan interest can be claimed only by people itemizing on their tax returns, Congress wrote the deduction for auto loan interest so that it can apply to all taxpayers, including those claiming the standard deduction. On a tax form, the auto loan deduction will come before the calculation of a taxpayer's adjusted gross income. That's an important distinction, because many states use a taxpayer's federal adjusted gross income as the starting point for figuring their state income taxes. If that income figure is lower, it could reduce the state taxes owed. At Bowen Scarff Ford in Kent, Washington, customers started asking about the auto loan tax deduction before Congress had even taken a final vote on the tax-cut bill, said General Manager Paul Ray. So he decided to promote it on the dealer's website. A website ribbon exclaims: 'CAR LOAN TAX DEDUCTION NOW AVAILABLE" while also promoting an electric vehicle tax credit that is ending soon as a result of Trump's tax-cut law. 'I think it's going to help incentivize vehicle purchases through this year," Ray said. Celia Winslow, president and CEO of the American Financial Services Association, concurred: 'For some people deciding — should I buy it, should I not — this could be something that tips the scale.' Others remain skeptical. According to Smoke's math, the average annual tax savings is smaller than a single month's loan payment for a new vehicle. 'I don't think it moves the needle on somebody on the fence of buying a new vehicle or not," Smoke said. "But I think it could influence their decision to finance that vehicle instead of paying cash or instead of leasing a vehicle.' © Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
13-07-2025
- Automotive
New tax break for auto loans could save some buyers thousands of dollars. But will it boost sales?
Millions of people receive a federal tax deduction for the interest they pay on home loans. Under President Donald Trump's new tax-cut law, many people for the first time also could claim a tax deduction for interest on their vehicle loans. The new tax break will be available even to people who don't itemize deductions. But there are some caveats that could limit its reach. The vehicles must be new, not used. They must be assembled in the U.S. And the loans must be issued no sooner than this year, to list just a few qualifications. Here are some things to know about the new auto loan interest tax deduction: Trump pledged while campaigning last year to make interest on car loans tax-deductible. He said it would make car ownership more affordable and 'stimulate massive domestic auto production.' The idea made it into the big tax-cut bill passed by Congress, which Trump signed into law July 4. The law allows taxpayers to deduct up to $10,000 of interest payments annually on loans for new American-made vehicles from 2025 through 2028. It applies to cars, motorcycles, sport utility vehicles, minivans, vans and pickup trucks weighing less than 14,000 pounds, a threshold referred to as light vehicles. But it only applies to vehicles purchased for personal use, not for fleets or commercial purposes. The tax break can be claimed starting on 2025 income tax returns. But the deduction phases out for individuals with incomes between $100,000 and $150,000 or joint taxpayers with incomes between $200,000 and $250,000. Those earning more cannot claim the tax break. U.S. automobile dealers sold 15.9 million new light vehicles last year, a little over half of which were assembled in the U.S, according to Cox Automotive. It says around 60% of retail sales are financed with loans. After excluding fleet and commercial vehicles and customers above the income cutoff, an estimated 3.5 million new vehicle loans could be eligible for the tax break this year, if purchasing patterns stay the same, said Jonathan Smoke, chief economist at Cox Automotive. The tax break applies to vehicles assembled in the U.S., no matter where the company making them is headquartered. All Tesla vehicles sold in the U.S. are assembled in this country. But so are all Acura brands, the luxury model of Japanese automaker Honda. Last year, 78% of Ford vehicles sold in the U.S. were assembled in this country, according to Cox Automotive. But customers wanting the tax break will need to pay attention to specific models. While the Ford Mustang is assembled in Michigan, the Mustang Mach-E is built in Mexico. General Motors assembles all of its Cadillacs in the U.S. But just 44% of its Chevrolets sold last year were assembled in the U.S., and just 14% of Buicks, according to Cox Automotive. That's a lower U.S-assembled rate than Honda (60%), Toyota (52%) and Nissan (48%), which all are headquartered in Japan. The average new vehicle loan is about $44,000 financed over six years. Interest rates vary by customer, so the savings will, too. In general, the tax deduction will decline after the initial year, because interest payments on loans are frontloaded while principal payments grow on the back end. At a 9.3% interest rate, an average new vehicle buyer could save about $2,200 on taxes over four years, Smoke said. The tax savings would be less on a loan at 6.5%, which is the rate figured into calculations by the American Financial Services Association, a consumer credit industry trade group. Whereas the tax deduction for home loan interest can be claimed only by people itemizing on their tax returns, Congress wrote the deduction for auto loan interest so that it can apply to all taxpayers, including those claiming the standard deduction. On a tax form, the auto loan deduction will come before the calculation of a taxpayer's adjusted gross income. That's an important distinction, because many states use a taxpayer's federal adjusted gross income as the starting point for figuring their state income taxes. If that income figure is lower, it could reduce the state taxes owed. At Bowen Scarff Ford in Kent, Washington, customers started asking about the auto loan tax deduction before Congress had even taken a final vote on the tax-cut bill, said General Manager Paul Ray. So he decided to promote it on the dealer's website. A website ribbon exclaims: 'CAR LOAN TAX DEDUCTION NOW AVAILABLE" while also promoting an electric vehicle tax credit that is ending soon as a result of Trump's tax-cut law. 'I think it's going to help incentivize vehicle purchases through this year," Ray said. Celia Winslow, president and CEO of the American Financial Services Association, concurred: 'For some people deciding — should I buy it, should I not — this could be something that tips the scale.' Others remain skeptical. According to Smoke's math, the average annual tax savings is smaller than a single month's loan payment for a new vehicle. 'I don't think it moves the needle on somebody on the fence of buying a new vehicle or not," Smoke said. "But I think it could influence their decision to finance that vehicle instead of paying cash or instead of leasing a vehicle.'
