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Trump warns U.S. carmakers not to take advantage of tariffs by hiking prices on consumers

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  • The Trump administration believes auto execs could be tempted to use the tariffs as cover to push through their own hefty price hikes without risking the competitiveness of their U.S. built vehicles. This would be an effective means of balancing out the loss of sales from tariffs placed on their foreign imports. “The math would tell you that’s going to cost us multibillions of dollars,” one executive told the Wall Street Journal. “So who pays for that?”

The White House is afraid automakers could take advantage of next month’s tariffs to arrange an across-the-board price hike on Americans looking to buy a new car.

Come April 3, all new vehicles built abroad will be slapped with a 25% import duty, a cost that will likely be passed on to U.S. consumers. Since this affects roughly half the cars sold in the country, companies like General Motors could use the tariff increase as cover to increase their prices on domestically-built vehicles as well.

To mitigate the threat of an across-the-board increase in car prices, President Donald Trump held a phone call with management from the top automakers in the country, warning them not to use the tariffs as an excuse to raise prices on domestic cars.

In it, Trump told the executives that the White House would look unfavorably on such a move, leaving some of them rattled and worried they would face punishment if they increased sticker prices, according to the Wall Street Journal report citing people with knowledge of the call. 

“The math would tell you that’s going to cost us multibillions of dollars,” one executive told the paper. “So who pays for that?”

The Trump administration did not reply by press time to a request from Fortune for comment. 

Rising car prices a major factor behind pandemic inflation

In the aftermath of the COVID-era semiconductor crunch that began in early 2021, the lack of supply of new cars sent prices soaring by roughly 20%, and even more for used cars, and to this day they remain elevated over their long term average. 

Together they were a major driver behind the post-pandemic bout of inflation that scarred Americans, helping return Trump return to the Oval Office. A key promise of the Trump campaign was a pledge to lower the cost of living for everyday Americans. 

The White House has squared the circle by claiming tariffs are a tax on foreign countries, a kind of IRS only in this case the rest of the world pays.

Much of the economics profession has repudiated this claim, however, and American consumers will soon find out if they are correct. 

Once the industry’s stockpile of imported cars and parts is depleted, the Trump tariffs could add $4,711 to the cost of a vehicle under the new rules, according to an estimate from celebrated supply-side economist Arthur Laffer, a favorite among pro-business Republicans.

Using that math, carmakers would be in a position to increase the price of a U.S.-built vehicle by $4,000 and still remain below the direct competition. The added profit could help offset the potential loss of sales for Mexican-built cars for companies like General Motors and Stellantis 

Trump: stagnant U.S. car production poses a threat to security

How did Trump manage to impose such steep tariffs unilaterally? The administration availed itself of a legal loophole. 

“Automobiles and certain automobile parts are being imported into the United States in such quantities and under such circumstances as to threaten to impair the national security of the United States,” the White House said, adding that the U.S. share of global auto production has stagnated over the past six years.

Arguing foreign cars that cross the border somehow pose a danger to the world’s richest and most powerful country is not an obvious argument for many. Without it, however, Trump would need Congress to implement the tariffs, since the Constitution places responsibility for tariffs and trade under the purview of the legislative branch of government. 

The only exception to the rule is Section 232, which allows the executive to restrict imports strictly when there is a national security theat.

Trump’s solution is to argue that countries like Australia, which imports all of its motor vehicles after the last domestic production site closed in late 2017, are strategically vulnerable due to the loss of a portion of its heavy industry.

“Only about half of the vehicles sold in the United States are manufactured domestically, a decline that jeopardizes our domestic industrial base and national security,” the White House said.

This story was originally featured on Fortune.com



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‘A Minecraft Movie’ brings in another $80.6 million to top the box office again, making it Hollywood’s biggest film of 2025

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After just two weeks in theaters, “A Minecraft Movie” is already the highest grossing Hollywood release of 2025.

The Warner Bros. videogame adaptation followed up its blockbuster opening with a second weekend of $80.6 million in ticket sales, according to studio estimates Sunday. Worldwide, it’s quickly surpassed $550 million.

After doubling expectations in its $300 million global debut, “A Minecraft Movie” continued to draw audiences unlike anything else this year. The film, directed by Jared Hess and starring Jack Black and Jason Momoa, slid 50% in its second go-around in U.S. and Canadian theaters — an impressive hold after such a big debut.

Though critics slammed the movie (46% “fresh” on Rotten Tomatoes) and audience scores were merely good (a “B+” CinemaScore), “A Minecraft Movie” latched on with moviegoers who have increasingly turned out in droves for big-budget videogame adaptations.

“A Minecraft Movie,” a $150 million co-production of Warner Bros. and Legendary Entertainment, has helped -– at least for now -– reinvigorate theaters after a dismal start to the year. Overall ticket sales were double that of the same weekend in 2024, according to Comscore. Before “A Minecraft,” box office revenues trailed last year’s by 11%, but have now virtually pulled even. (2025 grosses still trail 2019’s by 31%, according to Comscore.)

None of the weekend’s new releases — Angel Studios’ “The King of Kings,” the Walt Disney Co.’s “The Amateur,” Universal Pictures’ “Drop” or A24’s “Warfare” — came close to challenging “Minecraft,” but several films outperformed expectations.

“The King of Kings,” an animated tale of Jesus’ life aimed at Christian audiences, came in second with $19.1 million in 3,200 theaters. The film, loosely based on a children’s book by Charles Dickens, includes a starry voice cast led by Oscar Isaac, Kenneth Branagh and Uma Thurman.

With an enviable “A+” CinemaScore from audiences, “The King of Kings” is posed to capitalize in the coming week before Easter. Part three of Fathom Entertainment’s TV series, “The Chosen: Last Supper,” also looked to appeal to Christian audiences. It launched with $6.2 million from 2,296 cinemas.

“The Amateur,” a 20th Century production starring Rami Malek as a CIA cryptographer hunting down his wife’s killers, debuted with $15 million domestically, plus another $17.2 million overseas. Critics deemed the revenge thriller an awkward star vehicle for Malek, who also produced. “The Amateur” cost $60 million to make.

“Warfare,” director Alex Garland’s follow-up to 2024’s “Civil War,” opened with $8.3 million in ticket sales from 2,670 theaters. Garland co-wrote and co-directed the A24 release with Iraq War veteran Ray Mendoza, who based the film on 2006 mission he and his fellow Navy SEALs undertook during the war. “Warfare,” which cost about $20 million to make, was lauded by critics as an uncommonly realistic portrait of combat.

“Drop,” the latest thriller from Blumhouse Productions, debuted with $7.5 million from 3,085 theaters. Christopher Landon’s film stars Meghann Fahy (“The White Lotus”) as a single-mom widow on a first date (Brandon Sklenar) who’s being terrorized by an unknown person by messages to her phone. “Drop,” which premiered at SXSW, cost less than $10 million to produce.

Top 10 movies by domestic box office

With final domestic figures being released Monday, this list factors in the estimated ticket sales for Friday through Sunday at U.S. and Canadian theaters, according to Comscore:

1. “A Minecraft Movie,” $80.6 million.

2. “The King of Kings,” $19.1 million.

3. “The Amateur,” $15 million.

4. “Warfare,” $8.3 million.

5. “Drop,” $7.5 million.

6. “The Chosen: Last Supper (Part 3),” $6 million.

7. “A Working Man,” $3.1 million.

8. “Snow White,” $2.8 million.

9. “The Woman in the Yard,” $2.1 million.

10. “The Chosen: Last Supper (Part 2),” $932,106.

This story was originally featured on Fortune.com



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Volunteer days are vital to employees’ wellbeing…and your business—this CEO explains why

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‘Making a difference together’: Dift helps partners including Accor and BNP Paribas combine social impact with emotional marketing

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Consumers value companies that create meaning, as do employees. This growing demand has created opportunities for platforms to facilitate meaningful corporate engagement through innovative solutions that give back to society.

French startup Dift is one example, with a platform that helps companies reward their clients and employees with donations that support social and environmental causes of their choice — joining the dots between marketing and impact.

Originally called Captain Cause, Dift rebranded in 2024. The new name is a contraction of the “don” (the French word for “donation”) and “gift”, which the startup hopes will become ubiquitous enough to turn into a verb.

“Our dream at Dift is for as many people as possible to discover local causes that resonate with them. Because we know that giving makes people happy,” Dift cofounder and CEO, Georges Basdevant told Fortune. “To achieve this, we have a message for all Chief Marketing Officers of visionary brands: Have you considered involving your customers in your impact initiatives?”

Basdevant may be a dreamer appealing to visionaries, but he is also a doer. So is Dift president and cofounder Frédéric Mazzella, who previously cofounded French ridesharing unicorn BlaBlaCar in 2006.

With 80 million passengers in 2023, BlaBlaCar is now one of Europe’s top scaleups (although it has no plans to IPO just yet). But the carpooling app hit plenty of bumps along the road, and only reached profitability in 2023 after a “pretty rough” pandemic.

This taught Mazzella a thing or two about navigating uncertainty, and how some fundamentals, like people’s instinct to connect and contribute, never change. That’s why he’s betting that even in tough times for companies and households, Dift’s model will find its footing.

“Crisis or not, one thing remains clear: the expectation for businesses to align profit with purpose is here to stay. This is a fundamental trend—90% of consumers expect brands to take action, according to a Oney study,” Mazzella said.

Brands are listening, too. Dift is only three years old, but has already secured major customers such as Accor, Carrefour, Engie and FDJ. This also helped it expand its reach beyond France; Accor’s loyalty program ALL, for instance, has more than 100 million members worldwide.

The use case itself is both simple and impactful: Thanks to Dift, ALL members can use their points to support causes, such as providing clean water to areas in need or helping unemployed people train for new job opportunities.

According to Accor’s Chief Loyalty & E-commerce Officer, Mehdi Hemici, the initiative has raised over 225,000 euros since its inception. “By integrating sustainability into our loyalty program, we are redefining how travel and purpose can go hand in hand.”

For companies, this also ensures that impact is not only a cost center. There is business value to be derived from emotional marketing, which can also be more efficient. “It creates a new bond between companies and their clients based on action around a shared purpose,” said Mazzella.

The trend is expanding to financial giants too: Dift distributed more than €10 million to date, and recently expanded its reach through a partnership with BNP Paribas. The bank had already introduced a mechanism to incorporate a donation component into its financial products, which Dift will now help scale.

According to Youri Siegel, Head of BNP Paribas Global Markets Sustainable Structuring, the goal of the initiative is to “encourage philanthropic engagement among both institutional and retail investors, enabling them to make a positive impact through their investments.”

Dift has impact embedded into its DNA, while being VC-compatible: In 2022, this ‘mission-driven company’ raised a €3.5 million seed round led by VC firm OneRagtime, with participation from MAIF Impact, Daphni, AFI Ventures and VNV Global. “As Patagonia shows,” said Basdevant, “nothing brings people together more than making a difference together.”

This story was originally featured on Fortune.com



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