Tariffs hit cars, the travel industry declines, and BYD comes for Tesla: Business news roundup
Plus, UPS will cut 20,000 jobs because fewer Amazon packages are coming
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President Donald Trump’s move to soften his automotive tariffs will lessen the pain, experts say, but it still won’t keep prices from rising.
Usha Haley is an expert on autos and auto parts. She is currently the Barton Distinguished Chair in International Business at Wichita State University and offered some of her thoughts on winners and losers to Quartz.
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The travel and tourism industry, which accounts for about 3% of the U.S. GDP, has long been one of the economy’s most robust sectors, particularly when it comes to trade: The U.S. had posted a trade surplus in travel every year this century. Until this year.
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As Tesla CEO Elon Musk announced plans last week to scale back his government work, the relief among investors was palpable. Tesla’s stock jumped despite weak revenue and declining deliveries. But this momentary reprieve masks a deeper existential threat facing Tesla and other American automakers: China’s BYD is coming for their lunch — and showing few signs of slowing down.
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UPS (UPS) said Tuesday that it would cut 20,000 jobs this year and shutter 73 facilities after significantly scaling back its delivery partnership with Amazon (AMZN) — previously its largest customer accounting for 12% of revenue.
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President Donald Trump says the economy’s myriad struggles aren’t his fault — as markets continue to fall, a trade war swirls, and more and more people expect a recession. Instead, he says, the American public should blame former President Joe Biden.
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The White House has accused Amazon (AMZN) of planning a “hostile and political act,” after a report said the tech giant would display how much tariffs will raise prices.
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President Donald Trump says his sweeping tariff policy will restore American manufacturing, rebuild the economy, and ensure national security. Whether that happens remains to be seen; meanwhile, the immediate effect of the trade war is that prices are rising.
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Amazon (AMZN) said it never planned to display how much tariffs would raise prices on its main website, hours after the White House said doing so would be a “hostile and political act.”
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Cheap goods from China are getting a whole lot more expensive. A shift in U.S. trade policy that will go into effect on May 2 is already affecting how millions of Americans shop online.
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The Tesla (TSLA) board may have shot down reports of a leadership shake-up, but one analyst says the message was clear: Elon Musk isn’t untouchable. The report, Wedbush analysts led by Dan Ives said on Wednesday, was a clear “warning shot” from the board.