Latest news with #auto sector
Yahoo
2 days ago
- Automotive
- Yahoo
Key takeaways from the EU-US trade deal
EU head Ursula von der Leyen and US President Donald Trump on Sunday struck a deal on tariffs, just days before the August 1 deadline when Trump had threatened to impose steep levies on European goods had an agreement not been reached. These are the key takeaways from the deal: EU chief Ursula von der Leyen clinched an agreement Sunday with US President Donald Trump to avoid crippling tariffs from hitting the bloc, with both leaders hailing a 'good deal'. The stakes were high with a looming August 1 deadline and $1.9 trillion transatlantic trading relationship on the line. Many European businesses will breathe a sigh of relief after the leaders agreed the 27-country bloc will face a baseline levy of 15 percent instead of a threatened 30 percent – but the deal will not satisfy everyone. Here is what we know so far: What did EU, US agree on? Both sides confirmed there will be a 15-percent across-the-board rate on a majority of EU goods – the same level secured by Japan this month – with bilateral tariff exemptions on some products. Read moreTrump announces 'massive' trade deal with Japan, 15 percent tariff on exports The deal will bring relief for the bloc's auto sector, employing around 13 million people – and hit by Trump with 25-percent tariffs, on top of a pre-existing 2.5 percent. 'Obviously, it is good news for the car industry. So Germany will be happy. And all the EU members with auto supply chains, they go from 27.5 to 15 percent,' said Jacob Funk Kirkegaard of the Peterson Institute For International Economics. A 15-percent levy will remain 'costly' for German automakers, 'but it is manageable', said trade geopolitics expert Elvire Fabry at the Jacques Delors Institute. While 15 percent is much higher than pre-existing US tariffs on European goods – averaging 4.8 percent – it mirrors the status quo, with companies currently facing an additional flat rate of 10 percent imposed by Trump since April. The EU also committed to buy $750 billion of liquefied natural gas, oil and nuclear fuels from the United States – split equally over three years – to replace Russian energy sources. And it will pour $600 billion more in additional investments in the United States. Trump said EU countries – which recently pledged to ramp up their defence spending within NATO – would be purchasing 'hundreds of billions of dollars' worth of military equipment'. Are there exemptions? Von der Leyen said the 15-percent rate applied across most sectors, including semiconductors and pharmaceuticals – a critical export for Ireland, which the bloc has sought to protect. Trump in April launched probes that could lead to significantly steeper tariffs on the two key sectors, warning this month he could slap 200-percent levies on drugs. Brussels and Washington agreed a bilateral tariff exemption for key goods including aircraft, certain chemicals, semiconductor equipment, certain agricultural products and critical raw materials, von der Leyen said. The EU currently faces 50-percent tariffs on its steel exports to the United States, but von der Leyen said a compromise on the metal had been reached with Trump. 'Between us, tariffs will be cut and a quota system will be put in place,' she said. It is understood that European steel would be hit with 50-percent levies only after a certain amount of the metal arrived in the United States, but no details were initially provided on the mechanism. What happens next? The deal needs to be approved by EU member states, whose ambassadors will meet first thing Monday morning for a debrief from the European Commission. And there are still technical talks to come, since the agreement needs to be fully fleshed out. Von der Leyen described the deal as a 'framework' agreement. 'Details have to be sorted out, and that will happen over the next weeks,' she said. In particular, she said there has yet to be a final decision on alcohol, critical since France and The Netherlands have been pushing for carve-outs for wine and beer respectively. 'This is something which has to be sorted out in the next days,' von der Leyen said. (FRANCE 24 with AFP)
Irish Times
7 days ago
- Business
- Irish Times
Trump and Japan reach trade deal with tariff rate set at 15%
US president Donald Trump reached a trade deal with Japan that will impose 15 per cent tariffs on US imports from the country, including its auto sector, while creating a $550 billion (€468.74 billion) fund backed by the Japanese to make investments in the United States. The agreement, touted by Mr Trump after securing breakthroughs in a final 75-minute Oval Office meeting Tuesday with Japan's top trade negotiator, spares the key US ally from a threatened 25 per cent tariff set to take effect next week and raises hope for other trade deals over the coming days. 'They had their top people here and we worked on it long and hard, and it's a great deal for everybody,' Mr Trump said at a White House event Tuesday evening. Under the deal, Japanese automobiles and parts would be subjected to the same 15 per cent rate as other of the country's exports, according to a senior US administration official, speaking on condition of anonymity to outline the agreement. In return, Japan will accept cars and trucks built to US motor vehicle safety standards, without subjecting them to additional requirements – a potentially major step to selling more American-built vehicles in the country. A centrepiece of the pact with Japan is the $550 billion pledge, which the official said was akin to a sovereign wealth fund under which Mr Trump himself could steer investments inside the US. Final terms of the agreement still need to be enshrined in a formal proclamation. Legal particulars and other details surrounding the $550 billion investment pledge are still being hammered out, the official said. The investment timeline is uncertain, and it is unclear whether Mr Trump could allocate the full sum during his term. The source of the Japanese funding was also not immediately available. Japanese Prime Minister Shigeru Ishiba said the investment sum would reach as much as $550 billion and would partly come in the form of loan guarantees. Mr Trump played the role of closer after eight rounds of negotiations, pressing for more concessions and securing better terms for the US in that final Oval Office meeting with Japan's chief trade negotiator, Ryosei Akazawa, the official said. Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent joined in the final talks. Mr Trump has a track record of making last-minute demands in talks, including before the US inked its agreement with the UK. Previously, US and Japanese officials were said to be discussing a fund of around $400 billion, with profits equally split. But under the terms hashed out in the Oval Office meeting, Japan agreed to provide $550 billion to invest in projects in the United States that the president deems important, through vehicles returning 90 per cent of the profits to the US. A photo shared by Mr Trump's aide Dan Scavino on social media shows the initial figure was $400 billion, which appears to have been crossed out by Mr Trump and replaced by a handwritten $500 billion, before they settled at $550 billion. Japan has also agreed to buy 100 Boeing Co. aircraft, boost rice purchases by 75 per cent and buy $8 billion in agricultural and other products while hiking defence spending with American firms to $17 billion annually, from $14 billion, the senior official said. The country will also participate in an LNG pipeline project in Alaska, the official said, an apparent reference to a long-stalled $44 billion venture designed to export the state's gas around the globe. Mr Trump told lawmakers at the White House Tuesday evening that Japan is 'forming a joint venture' on a proposed Alaskan LNG project. 'They're all set to make that deal now,' Mr Trump said. 'Japan and the US have been conducting close negotiations with our national interests on the line,' Ishiba said in Tokyo. 'The two nations will continue to work together to create jobs and good products.' Mr Trump also pledged to give Japan a safety clause on forthcoming sectoral tariffs, including levies expected on semiconductors and pharmaceutical drugs – effectively agreeing to not treat the country worse than any other nation when it comes to those goods, the official said. In effect, that means Japan will be guaranteed whatever the lowest global rate is on those tariffs. US negotiators have so far resisted efforts to make exceptions and carveouts for sectoral tariffs, though the UK deal included a plan for limited relief from levies on steel. Shares in Japanese carmakers jumped in Tokyo on reports the auto sector rate would be lowered from 25 per cent to 15 per cent for Japan, with Toyota Motor Corp. rising more than 11 per cent. Mr Trump has repeatedly zeroed in on auto trade as he criticises trade imbalances with the country. Around 80 per cent of Japan's trade surplus with the US is in cars and auto parts. The yen fluctuated in early Tokyo trading, before strengthening again after the report from public broadcaster NHK on the auto tariffs. Japanese stocks on the Topix benchmark index rose, led by automakers, and US equity futures edged higher. – Bloomberg
CTV News
16-07-2025
- Automotive
- CTV News
Ontario should rejig its programs meant to support the auto industry: CFIB
Video The CFIB released a report based on a survey of 187 small-to-medium-sized businesses in the auto sector, and found that their revenue has declined by 13 per cent, on average.
Yahoo
16-07-2025
- Automotive
- Yahoo
India's L&T Technology misses quarterly revenue estimates, targets double-digit FY26 growth
(Reuters) -India's L&T Technology Services expects to log double-digit revenue growth in fiscal year 2026 and maintained its medium-term outlook of $2 billion revenue, boosted by an increased order book, CEO Amit Chadha said on Wednesday. However, the engineering and technology firm posted first-quarter revenue below analysts' estimates, as weakness in the global auto sector hit the company's mobility segment. Its consolidated revenue rose 16.4% to 28.66 billion rupees ($333.54 million) in the quarter ended June 30. Analysts had expected a revenue of 29.07 billion rupees, as per data compiled by LSEG. Revenue from its mobility segment, which makes up about 30% of total revenue and offers engineering and digital services to auto firms, fell 2.1% during the quarter. The firm's net profit grew 0.7% on-year to 3.16 billion rupees, but still above analysts' expectation of 3.11 billion rupees. KEY CONTEXT India's engineering, research & development firms, which rely heavily on outsourced work from U.S. and European clients, is seeing a broad slowdown as clients rethink spending priorities. The global auto sector - a key clientele - has been beset by concerns over U.S. tariffs, weak growth in China, sluggish EV adoption, and China's export curbs on rare earths. Peer Tata Elxsi missed quarterly earnings estimates last week, hurt by slowing research and development spend by customers across geographies. PEER COMPARISON Valuation (next Estimates (next 12 Analysts' sentiment 12 months) months) RIC PE EV/EBIT Revenue Profit Mean # of Stock to price Div yield DA growth(%) growth(%) rating* analysts target** (%) Tata Elxsi 46.38 34.12 6.96 4.42 SELL 12 1.29 1.21 L&T Technology Services 31.10 19.65 13.52 12.67 HOLD 28 0.96 1.26 KPIT Technologies 37.94 22.64 13.37 6.95 BUY 17 0.91 0.67 Tata Technologies 38.21 27.99 3.44 7.35 SELL 10 1.12 1.19 * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell ** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT APRIL-JUNE STOCK PERFORMANCE -- All data from LSEG ($1 = 85.9260 Indian rupees) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
