Trump Car Tariffs

 

President Donald Trump has announced new import taxes of 25% on cars and car parts coming into the US. Trump said the latest tariffs would come into effect on 2 April, with charges on businesses importing vehicles starting the next day. Taxes on parts are set to start in May or later. The president said the measure would lead to "tremendous growth" for the industry, promising it would spur jobs and investment in the US. But analysts have said the move is likely to lead to the temporary shutdown of significant car production in the US, increase prices, and strain relations with allies. Trump's latest move threatens to upend global car trade and supply chains. The US imported about eight million cars last year - accounting for about $240bn (£186bn) in trade and roughly half of overall sales. Mexico is the top supplier of cars to the US, followed by South Korea, Japan, Canada and Germany. Tariffs are taxes charged on goods imported from other countries. The companies that bring the foreign goods into the country pay the tax to the government. Firms may choose to pass on some or all of the cost of tariffs to customers. Trump's plan for car tariffs is his latest in his wider drive to protect American businesses and boost manufacturing within the US. But while the measures can protect domestic businesses, they also raise costs for businesses reliant on parts from abroad. Analysts have estimated that tariffs on parts just from Canada and Mexico could lead to costs rising by $4,000-$10,000 depending on the vehicle, according to the Anderson Economic Group. Vehicles are the UK's biggest export to the US, totalling 101,000 last year worth £9bn.

What are your opinions on the trump tariff? What would you do as the UK government or as a UK car manufacturer?

Trump Tariffs

WH Smith to Disappear from High Street

After more than two centuries as a staple of British high streets, WH Smith is set to disappear from town centres following a £76 million sale to Modella Capital. The iconic retailer, founded in 1792, has decided to sell its 480 high street stores to focus exclusively on its more profitable travel outlets located in airports, train stations, and hospitals. This strategic shift comes as WH Smith's travel business now accounts for 75% of its revenue and 85% of its trading profit. The high street stores will be rebranded as TG Jones, a name chosen to echo the heritage of WH Smith while marking a new chapter under Modella Capital's ownership. The new owners plan to maintain the current range of products and services, including Post Office and Toys “R” Us outlets, while exploring new offerings to revitalize the brand. This move reflects the broader challenges facing high street retailers, as changing consumer habits and economic pressures continue to reshape the retail landscape. Despite the end of an era for WH Smith on the high street, the brand's legacy will endure through its travel stores and online presence

What are your thoughts on this significant change in the retail sector? Do you think the rebranding will help TG Jones succeed where WH Smith struggled?

WH Smith

Egg-spensive Easter Eggs

Easter egg prices have surged by up to 56% compared to last year, according to a recent report by Which? This dramatic increase is attributed to a significant drop in global cocoa production, driven by higher temperatures affecting the quality and quantity of cocoa beans. As a result, many popular chocolate treats have not only become more expensive but have also shrunk in size, a phenomenon known as "shrinkflation". For example, an 80g pouch of Terry's chocolate orange mini eggs at Lidl has increased from 99p to £1.35 while shrinking to 70g. Despite these rising costs, consumers can still find good deals by looking for special offers, comparing prices per gram, or waiting until Easter Sunday when many eggs are likely to be discounted. The price of chocolate in the UK has risen by 16.5% in a year, compared to a 4.4% increase for supermarket food and drink overall. At Morrisons, a 200g Cadbury Creme Egg 5 Pack Mixed Chocolate Box increased from £2.62 last year to £4 this year. Similarly, a Twix white chocolate Easter egg at Tesco rose from £5 to £6 while shrinking from 316g to 258g, making it 47% more expensive per 100g. This trend is not limited to Easter eggs; other chocolate products have also seen significant price hikes. For instance, Asda's Fruit & Nut Milk Chocolate 200g bar increased by 73%, from £1.33 to £2.30.

Given these rising costs and shrinking sizes do you think this will impact sales of easter eggs?

Easter Egg Prices

Cybertruck Recall

 

Thousands of Tesla Cybertrucks have been recalled in the US due to concerns about part of the electric car's trim falling off in the model's eighth and largest ever recall. The issue affects more than 46,000 trucks made starting in November 2023, which analysts say amounts to nearly all Cybertrucks. It comes as Tesla, which did not respond to a request for comment, grapples with falling sales amid a backlash against the firm and its boss Elon Musk Prior Cybertruck recalls involved failing windshield wipers, trapped accelerator pedals, possible loss of drive power to the wheels, and other issues.Tesla told NHTSA it had received about 150 claims from drivers about the issue but was not aware of any accidents caused by the problem. It estimated that the issue affected about 1% of vehicles involved in the recall. The issue is covered under a warranty for new owners, and the company will replace the piece free-of-charge. Tesla's shares have dropped nearly 40% since January, erasing the jump in value that it enjoyed after the 2024 US election. The fall has been significantly more than the overall drop in the US stock market over that period. The political backlash adds to the challenges the company had already been facing from increased competition and an ageing line-up of offerings. The Cybertruck was supposed to help reignite buzz around the brand and help it break into the lucrative market for pickup trucks in the US. It hit the roads in late 2023 and carries a starting cost of more than $72,000 (£55,500).

Tesla Cybertruck

Santander To Close 95 Stores

Santander has announced it is set to close 95 branches across the UK, putting 750 jobs at risk. The High Street bank said its customers were increasingly shifting to banking online and it aimed to start closing almost a quarter of its branches from June. As part of the changes, Santander will also reduce hours at 36 branches and remove the front counters from 18 others. It is the latest bank to announce branch closures, with Lloyds announcing 136 closures in January. The closures will leave Santander with 349 branches, down from 444. It said the areas to lose branches would be covered by 95 "community bankers" who will visit local communities on a weekly basis in facilities such as libraries. Santander said the changes were due to a "a rapid movement of customers choosing to do their banking digitally". It added digital transactions had increased by just under two thirds since 2019, with a similar drop for transactions in branches. About 750 staff will be at risk of redundancy if the proposals go ahead after consultation with the unions, the Spanish-owned bank said.

Santander Closures

Tesco Wage Rise

Tesco will lift pay for its store staff by 5.2% but will scrap the extra pay for working on Sunday. The UK's biggest supermarket chain said the hourly rate will go up by 43p to £12.45 from 30 March after reaching a deal with unions. It will raise pay again to £12.64 from the end of August - a little above the UK national minimum wage which is set to rise to £12.21 per hour from April. However, Tesco will also drop the current 10% pay bonus for Sunday shifts for all staff, which it had already stopped providing for new starters. Tesco's UK chief executive says the £180m spent on funding the pay increases is a "significant investment". The move comes as many big supermarkets raise pay to attract more staff in a tight labour market. In January, Sainsbury's said it will raise hourly pay by 5%, also in two phases, but said it was cautious about recruiting new staff in 2025 due to rising costs "to help manage a particularly tough cost inflation environment". The German-owned discount chain Lidl will also raise pay, it announced in February, from £12.40 per hour to £12.75. Chancellor Rachel Reeves announced in the October Budget that in April, along with the national minimum wage, employer National Insurance contributions will also rise. Businesses have said the extra costs from these changes will mean higher prices, job cuts, and shop closures, though unions have criticised firms for saying this.

Tesco Wage Rise

Cadburys x Biscoff

Cadbury has teamed up with Lotus Biscoff to launch a co-branded Dairy Milk bar. The milk chocolate tablet, available in 95g (rsp: £1.75), 95g PMPs (£1.69) and 105g (rsp: £2) formats, is studded with pieces of Lotus Biscoff’s famous speculoos biscuits. It would “tap into consumer interest in new flavours and textures, and drive cross-brand excitement”, said Cadbury. “Combining two delicious favourites is a great way to give consumers the best of both,” said Cadbury Dairy Milk brand manager Connor Gould. “As a result, the new Cadbury Dairy Milk Biscoff is sure to utilise consumer demand for unique flavours to help drive category growth,” Gould added. The launch is being supported by “eye-catching” co-branded PoS materials, along with social, influencer and seasonal content. The manufacturer said it would launch a co-branded Cadbury and Biscoff product in the UK, and a co-branded Milka and Biscoff product in Europe. The partnership also aimed to grow the Lotus Biscoff brand in India, by leveraging Mondelez’s extensive distribution network and local market presence in the country. It comes as a swathe of other fmcg brands have been innovating to cash in on the growing popularity of Biscoff.

BBQ - What other brand collaborations would you like to see?

Cadburys Biscoff