Trump eases auto tariffs burden as Lutnick touts first foreign trade deal

US President Donald Trump delivers his 100th Day in office achievement speech at Macomb County Community College Sports Expo Center in Warren, Michigan, on April 29, 2025. (AFP)
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Updated 30 April 2025
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Trump eases auto tariffs burden as Lutnick touts first foreign trade deal

WASHINGTON/DETROIT: US President Donald Trump signed a pair of orders to soften the blow of his auto tariffs on Tuesday with a mix of credits and relief from other levies on materials, and his trade team touted its first deal with a foreign trading partner.
The developments helped eased some investor worries about the erratic trade policies of Trump as the president visited Michigan, a cradle of the US auto industry, just days before a fresh set of 25 percent import taxes was set to kick in on automotive components.
The trip, on the eve of his 100th day in office, came as Americans take an increasingly dim view of Trump’s economic stewardship, with indications his tariffs will weigh on growth and could drive up inflation and unemployment.
In his latest partial reversal of tariff policies, the Republican president agreed to give carmakers two years to boost the percentage of domestic components in vehicles assembled domestically.
It will allow them to offset tariffs for imported auto parts used in US-assembled vehicles equal to 3.75 percent of the total value of the Manufacturer’s Suggested Retail Price of vehicles they build in the US through April 2026, and 2.5 percent of US production through April 30, 2027.
Auto industry leaders had lobbied the administration furiously during the weeks since Trump first unveiled his 25 percent tariffs on imported vehicles and auto parts. The levies, aimed at forcing automakers to reshore manufacturing domestically, had threatened to scramble a North American automotive production network integrated across the US, Canada and Mexico.
It offers the industry a “little relief” as companies invest in more US production, Trump said as he left Washington for Michigan. “We just wanted to help them ... if they can’t get parts, we didn’t want to penalize them.”
The White House said the change will not affect the 25 percent tariffs imposed last month on the 8 million vehicles the United States imports annually.
Autos Drive America, a group representing Toyota Motor, Volkswagen, Hyundai and nine other foreign automakers, said Trump’s order provided some relief “but more must be done in order to turbocharge the US auto industry.”

MORE TARIFF UNCERTAINTY

Candace Laing, president of the Canadian Chamber of Commerce, said the tariff fix fell short of what companies in the deeply integrated North American industry needed.
“Only an end to tariffs provides real relief. Ongoing ups and downs perpetuate uncertainty, and uncertainty drives away business for both Canada and the U.S,” she said in a statement.
The uncertainty unleashed across the auto sector by Trump’s tariffs remained on full display Tuesday when GM pulled its annual forecast even as it reported strong quarterly sales and profit. In an unusual move, the carmaker also opted to delay a scheduled conference call with analysts until later in the week, after the details of tariff changes were known.
Meanwhile, US Commerce Secretary Howard Lutnick told CNBC he had reached a deal with one foreign power that should permanently ease the “reciprocal” tariffs Trump plans to impose. Lutnick declined to identify the country, saying the deal was pending local approvals.
“I have a deal done ... but I need to wait for their prime minister and their parliament to give its approval,” he said.
White House officials had no further comment on the country in question, but Trump struck an upbeat tone about a deal with India, telling reporters: “India is coming along great. I think we’ll have a deal with India.”
Lutnick’s comments helped further lift stock prices that had been battered by Trump’s moves to reshape global trade and force goods makers to shift production to the US. The benchmark S&P 500 Index closed 0.6 percent higher for a sixth day of gains, its longest streak of gains since November.

WRONG ON EVERY PREDICTION

Trump and his team aim to strike 90 trade deals during a 90-day pause on his reciprocal tariffs announced earlier in April. His administration has repeatedly said it was negotiating bilateral trade deals with dozens of countries.
A chief Trump goal is to bring down a massive US goods trade deficit, which shot to a record in March on a surge of imports aimed at front-running the levies.
Trump’s aggressive trade stance has cascaded through the global economy since his return to office in January, and the 90-day pause was unveiled after fears of recession and inflation sent financial markets into a tailspin.
Easing the impact of auto levies is Trump’s latest move to show flexibility on tariffs which have sown turmoil in financial markets, created uncertainty for businesses and sparked fears of a sharp economic slowdown. A Reuters/Ipsos poll published Tuesday showed just 36 percent of respondents approve of his economic stewardship, the lowest level in his current term or in his 2017-2021 presidency.
Meanwhile, the US will release the first quarterly report on US gross domestic product during Trump’s term on Wednesday. It is expected to reflect a large drag from his tariffs, mostly from a record surge in imports as companies and consumers front-loaded purchases of foreign goods to try to beat the new levies. The economy is expected to have expanded at a 0.3 percent annualized rate from January through March, according to a Reuters poll of economists, down from 2.4 percent in the final three months of 2024.
American and global companies are increasingly sounding the alarm about the tariffs’ effects on their ability to plan.
UPS on Tuesday said it would cut 20,000 jobs to lower costs, while US ketchup maker Kraft Heinz and Swedish appliances maker Electrolux were among companies citing tariff headwinds.
About 40 companies worldwide have pulled or lowered their forward guidance in the first two weeks of first-quarter earnings season, a Reuters analysis showed.
“Every single prediction has been proved to be wrong,” Yannick Fierling, Electrolux CEO, told Reuters. “I’m surprised if people are claiming they have a view where tariffs are going.” 


UK working with Israel to arrange charter flights out of Tel Aviv, Lammy says

Updated 10 sec ago
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UK working with Israel to arrange charter flights out of Tel Aviv, Lammy says

LONDON: Britain is working with Israeli authorities to arrange charter flights for British nationals from Tel Aviv when the airport reopens, foreign minister David Lammy said on Friday.
“As part of our efforts to support British nationals in the Middle East, the government is working with the Israeli authorities to provide charter flights from Tel Aviv airport when airspace reopens,” Lammy said in a statement.
Israel’s main international gateway, Ben Gurion Airport, closed last week due to Israel and Iran’s spiralling air war.
On Monday, the British government advised its citizens in Israel to register their presence with British authorities, saying it was monitoring the situation and considering options for assistance.
It said it had increased its logistical support for citizens who have turned to overland routes into Jordan and Egypt.

Taiwan to hold recall election for lawmakers that could reshape parliament

Updated 7 min 36 sec ago
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Taiwan to hold recall election for lawmakers that could reshape parliament

TAIPEI: Taiwan will hold a recall vote for around one quarter of parliament’s lawmakers — all from the main opposition party — next month, the election commission said on Friday, a move which could see the ruling party take back control of the legislature.
While Lai Ching-te won the presidency last year, his Democratic Progressive Party (DPP) lost its parliamentary majority, leaving the Kuomintang (KMT) and the much smaller Taiwan People’s Party with the most seats.
The KMT and the TPP have passed a series of measures, including swingeing budget cuts, angering the DPP, though the campaigns to gather enough signatures for the recalls were led by civic groups.
The opposition has 62 of parliament’s 113 seats and the DPP holds the remaining 51. The recall votes for 24 KMT lawmakers will take place on July 26, the election commission said.
The DPP has given full support for the recalls, releasing a video this week calling on people to vote yes and “oppose the communists” — a direct reference to China and what the party says is the opposition’s dangerous cosying up to Beijing.
The KMT has vowed to fight what it calls a “malicious recall” that comes so soon after the last parliamentary election in January 2024.
“The KMT calls on the people of Taiwan to oppose the green communists and fight against dictatorship, and vote ‘no’,” the party said in a statement after the recall vote was announced, referring to the DPP’s party colors.
The KMT says its engagement with China, which views separately-governed Taiwan as its own territory, is needed to keep channels of communication open and reduce tensions.
China has rejected multiple offers of talks from Lai, branding him a “separatist,” and has increased military pressure against the island.
Recall campaigns against DPP lawmakers failed to gather enough valid signatures.
For the recalls to be successful, the number of votes approving the measure must be more than those opposing it, and also exceed one-quarter of the number of registered voters in the constituency, so turnout will be important.
If the recall votes are successful, there will be by-elections later this year to select new lawmakers.
Taiwan’s next parliamentary and presidential elections are not scheduled until early 2028.


Belgium announces border checks in migration clampdown

Updated 24 min 40 sec ago
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Belgium announces border checks in migration clampdown

  • A spokesperson for the Belgian Immigration Office said it was difficult to give figures for illegal immigration at the moment without the systematic border checks

BRUSSELS: Belgium will introduce border checks on people coming into the country to clamp down on illegal migration, the government said, in another limit on free movement across Europe’s Schengen zone.
The restrictions in the country that borders the Netherlands, France, Luxembourg and Germany will start this summer, a spokesperson for the junior minister for migration, Anneleen Van Bossuyt, said on Friday.
“Time for entry controls. Belgium must not be a magnet for those stopped elsewhere. Our message is clear: Belgium will no longer tolerate illegal migration and asylum shopping,” Van Bossuyt wrote on X.
The announcement follows similar moves by the Netherlands and Germany, part of a broader crackdown on migration across the continent, even as numbers of arrivals on many major routes have shown signs of falling.
“The checks will be carried out in a targeted manner on major access roads such as motorway car parks, on bus traffic ... on certain trains ... and on intra-Schengen flights from countries with high migration pressure, such as Greece and Italy,” a Belgian government statement said late on Thursday.
Prime Minister Bart De Wever, in office since February, has said curbing migration is a key priority for his right-leaning government.
Belgium is part of the open-border Schengen area which guarantees free travel between its 29 member states. Under article 23 of the Schengen Borders Code, members can temporarily reinstate border checks in response to security or migration pressures.
A spokesperson for the Belgian Immigration Office said it was difficult to give figures for illegal immigration at the moment without the systematic border checks.
Belgium, one of the world’s richest countries, received 39,615 asylum applications in 2024, 11.6 percent more than in 2023, numbers from the Federal Agency for the Reception of Asylum Seekers show.
The country had the capacity to take in 35,600 applicants in 2024, according to the figures, leaving many arrivals without proper accommodation.


Iran-Israel war could have ‘harmful’ migration impact on Europe, Erdogan warns

Updated 41 min 27 sec ago
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Iran-Israel war could have ‘harmful’ migration impact on Europe, Erdogan warns

ISTANBUL: The Iran-Israel air war could spark a surge in migration that could harm Europe and the region, Turkish President Recep Tayyip Erdogan warned Friday.
Israel, saying Iran was on the verge of developing a nuclear weapon, launched a massive wave of strikes a week ago, triggering an immediate retaliation.
“The spiral of violence triggered by Israel’s attacks could harm the region and Europe in terms of migration and the possibility of nuclear leakage,” his office quoted him as saying in a phone conversation with German Chancellor Friedrich Merz.
Erdogan said the solution to the nuclear disagreements with Iran was “through negotiations.” He said the violence had “raised the threat to regional security to the highest level” and Turkiye was “making efforts to end the conflict.”
Despite the escalating confrontation, a Turkish defense ministry source said Thursday there had been “no increase” in numbers crossing from Iran.
The Turkish authorities have not released any figures.
AFP correspondents at the main Kapikoy border crossing near the eastern Turkish city of Van reported seeing several hundred people crossing in both directions, with a customs official saying the numbers were “nothing unusual.”
During a visit to the frontier on Wednesday, Defense Minister Yasar Guler said “security measures at our borders have been increased.”


Armed men in western Niger kill 34 soldiers and wound 14, authorities say

Updated 20 June 2025
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Armed men in western Niger kill 34 soldiers and wound 14, authorities say

DAKAR: Armed men killed 34 soldiers and wounded 14 others in western Niger near the tri-state border with Mali and Burkina Faso, the defense ministry said.
The attack was carred out around 9 a.m. Thursday in Banibangou by attackers using eight vehicles and more than 200 motorbikes, the ministry said in a statement.
The government said its forces killed dozens of attackers it called “terrorists,” adding that search operations by land and air were being conduted to find additional assailants.
Niger, along with its neighbors Burkina Faso and Mali, has for more than a decade battled an insurgency fought by jihadi groups, including some allied with Al-Qaeda and the Daesh group.
Following military coups in the three nations in recent years, the ruling juntas have expelled French forces and turned to Russia’s mercenary units for security assistance. The three countries have vowed to strengthen their cooperation by establishing a new security alliance, the Alliance of Sahel States.
But the security situation in the Sahel, a vast region on the fringes of the Sahara Desert, has significantly worsened since the juntas took power, analysts say, with a record number of attacks and civilians killed by Islamic militants and government forces.