Mazda To Build Battery Module Plant In Japan

industry week

Trump Unveils Sweeping Global TariffsU.S. President Donald Trump on Wednesday unveiled a raft of punishing tariffs targeting countries around the world including some of its closest trading partners, in a move that risks sparking a ruinous trade war. Speaking in the White House Rose Garden against a backdrop of U.S. flags, Trump slapped the most stinging tariffs on China and the European Union on what he called "Liberation Day." The dollar fell 1% against the euro and slipped against other major currencies as Trump was speaking. Trump reserved some of the heaviest blows for what he called the "nations that treat us badly," including 34% on goods from superpower rival China, 20% on key ally the European Union and 24% on Japan. But the 78-year-old Republican -- who held up a chart with a list of levies -- said that he was "very kind" and so was only imposing half the amount that those countries taxed U.S. exports. For the rest, Trump said he would impose a "baseline" tariff of 10%, including Britain. An audience of cabinet members, as well as workers in hard hats from industries including steel, oil and gas, whooped and cheered as Trump said the tariffs would "make America wealthy again." "This is Liberation Day," Trump said, adding that it would "forever be remembered as the day American industry was reborn, the day America's destiny was reclaimed." Sweeping auto tariffs of 25% that Trump announced last week are also due to take effect at 12:01 a.m. Thursday. 'Golden Age' Trump has telegraphed the move for weeks, insisting tariffs will keep the United States from being "ripped off" by other countries and spur a new "Golden Age" of American industry. But many experts warn the tariffs risk triggering a recession at home as costs are passed on to U.S. consumers and a damaging trade war abroad. The world has been on edge ahead of Trump's announcement. Markets have been volatile as investors hedged their bets, and the announcement came after Wall Street stocks closed. The tariffs will also reinforce fears that Trump is backing even further away from U.S. allies towards a new order based on a vision of American supremacy. U.S. trading partners have vowed swift retribution, while also trying to persuade Trump to reach deals to avoid tariffs in the first place. Germany warned Wednesday that trade wars hurt "both sides." The European Union will react to new Trump tariffs "before the end of April," said a French government spokeswoman. The 27-nation bloc's initial salvo would counter U.S. actions on steel and aluminum, followed by sector-by-sector measures. British Prime Minister Keir Starmer said a "trade war is in nobody's interests." "We have prepared for all eventualities -- and we will rule nothing out," he told parliament. Recession Fears Trump has had a long love affair with tariffs, insisting in the face of experts that they are a cure-all for America's trade imbalances and economic ills. The billionaire insists the levies will bring a "rebirth" of America's hollowed-out manufacturing capacity, and says companies can avoid tariffs by moving to the United States. But critics say U.S. businesses and consumers could bear the burden if importers pass on the cost, adding that the policy could increase risks of a recession. "If this trade war continues through Labor Day (on Sept. 1), the U.S. economy will likely suffer a recession this year," Mark Zandi, chief economist of Moody's Analytics, told AFP. Negotiations are likely to continue though as countries seek to halt the tariffs. Trump has previously been persuaded to halt tariffs on neighbors Canada and Mexico while trade talks continued. He ordered levies on both on the grounds that they had failed to stop the flow of the deadly opioid fentanyl into the U.S. All rights reserved ©2025 Agence France-Presse U.S. President Donald Trump on Wednesday unveiled a raft of punishing tariffs targeting countries around the world including some of its closest trading partners, in a move that risks sparking a ruinous trade war. Speaking in the White House Rose Garden against a backdrop of U.S. flags, Trump slapped the most stinging tariffs on China and the European Union on what he called "Liberation Day." The dollar fell 1% against the euro and slipped against other major currencies as Trump was speaking. Trump reserved some of the heaviest blows for what he called the "nations that treat us badly," including 34% on goods from superpower rival China, 20% on key ally the European Union and 24% on Japan. But the 78-year-old Republican -- who held up a chart with a list of levies -- said that he was "very kind" and so was only imposing half the amount that those countries taxed U.S. exports. For the rest, Trump said he would impose a "baseline" tariff of 10%, including Britain. An audience of cabinet members, as well as workers in hard hats from industries including steel, oil and gas, whooped and cheered as Trump said the tariffs would "make America wealthy again." "This is Liberation Day," Trump said, adding that it would "forever be remembered as the day American industry was reborn, the day America's destiny was reclaimed." Sweeping auto tariffs of 25% that Trump announced last week are also due to take effect at 12:01 a.m. Thursday. Trump has telegraphed the move for weeks, insisting tariffs will keep the United States from being "ripped off" by other countries and spur a new "Golden Age" of American industry. But many experts warn the tariffs risk triggering a recession at home as costs are passed on to U.S. consumers and a damaging trade war abroad. The world has been on edge ahead of Trump's announcement. Markets have been volatile as investors hedged their bets, and the announcement came after Wall Street stocks closed. The tariffs will also reinforce fears that Trump is backing even further away from U.S. allies towards a new order based on a vision of American supremacy. U.S. trading partners have vowed swift retribution, while also trying to persuade Trump to reach deals to avoid tariffs in the first place. Germany warned Wednesday that trade wars hurt "both sides." The European Union will react to new Trump tariffs "before the end of April," said a French government spokeswoman. The 27-nation bloc's initial salvo would counter U.S. actions on steel and aluminum, followed by sector-by-sector measures. British Prime Minister Keir Starmer said a "trade war is in nobody's interests." "We have prepared for all eventualities -- and we will rule nothing out," he told parliament. Trump has had a long love affair with tariffs, insisting in the face of experts that they are a cure-all for America's trade imbalances and economic ills. The billionaire insists the levies will bring a "rebirth" of America's hollowed-out manufacturing capacity, and says companies can avoid tariffs by moving to the United States. But critics say U.S. businesses and consumers could bear the burden if importers pass on the cost, adding that the policy could increase risks of a recession. "If this trade war continues through Labor Day (on Sept. 1), the U.S. economy will likely suffer a recession this year," Mark Zandi, chief economist of Moody's Analytics, told AFP. Negotiations are likely to continue though as countries seek to halt the tariffs. Trump has previously been persuaded to halt tariffs on neighbors Canada and Mexico while trade talks continued. He ordered levies on both on the grounds that they had failed to stop the flow of the deadly opioid fentanyl into the U.S. All rights reserved ©2025 Agence France-Presse

factory

02 April 2025

manufacturing net

8 Ai-Driven Advantages For Manufacturers Impacted By Steel, Aluminum TariffsSome of President Donald Trump's tariffs echo his first-term policies which imposed 25% tariffs on steel and 10% on aluminum in 2018 under Section 232 of the Trade Expansion Act of 1962, citing national security concerns. However, the 2025 measures are more aggressive, closing loopholes such as tariff exemptions and raising the aluminum tariff to match steel at 25%. The president has also signaled a willingness to impose even higher tariffs, as evidenced by the short-lived 50% threat against Canada. These tariffs are part of a broader trade agenda that includes a 20% levy on all Chinese imports and plans for reciprocal tariffs to match the import taxes imposed by other countries on U.S. goods. While the administration argues that these measures will protect domestic industries and strengthen national security, critics warn they could rekindle already high inflation, slow economic growth and harm U.S. manufacturers reliant on imported materials. Unfortunately, reshoring production isn’t a quick fix. Rebuilding the infrastructure and workforce to sustain domestic production could take decades. In the meantime, manufacturers must find ways to stay agile, competitive and compliant in a volatile trade war. While tariffs are designed to incentivize domestic production, history suggests they often trigger alternative responses. Instead of onshoring, many companies sidestep tariffs by shifting production to lower-cost regions like Vietnam, Chile or Mexico. During Trump's first term, the 2018 steel and aluminum tariffs benefited U.S. metal producers but imposed significant costs on downstream industries. A 2023 U.S. International Trade Commission report found that the $2.3 billion increase in production by steel and aluminum manufacturers was offset by a $3.5 billion decline in output among companies that use these materials. The immediate pain of the tariffs will be felt by manufacturers that rely on steel and aluminum. For instance, Steelport Knife Co., a small Oregon-based manufacturer, has already seen a 10% price hike from its U.S. steel supplier. The company's Japanese and German competitors can source steel at lower costs, putting the business at a disadvantage. To cope, Steelport is cutting costs by tightening inventories and reducing travel to trade shows. By leveraging AI, companies can proactively manage risks, optimize supply chains and stay ahead of policy shifts. Using large language models (LLM) and machine learning, AI-powered platforms can scan thousands of global trade sources including government updates, regulatory changes and industry reports in real-time. These systems instantly flag relevant changes, assess their impact and provide actionable insights. Automated alerts ensure that manufacturers are informed of critical updates the moment they occur, reducing reaction time and enabling proactive adjustments. This means manufacturers can pivot quickly, rather than scrambling to react after new tariffs take effect. Instead of guessing how new tariffs will affect profitability, AI-driven predictive models simulate different scenarios, helping manufacturers anticipate costs and adjust strategies accordingly. Experts warn that businesses relying on metal components, from vehicle manufacturing to food packaging, will struggle to absorb the added costs, ultimately passing them down to consumers. Some companies may attempt to shift away from metal-dependent production methods, such as beverage brands emphasizing plastic packaging over aluminum cans. If the steel tariff threatens margins, AI can recommend alternative sourcing strategies, pricing adjustments or contract renegotiations to mitigate losses. High tariffs can significantly impact supply chains by making certain imported components prohibitively expensive. AI-driven supply chain management tools can assess alternative sourcing options from different countries, taking into account production capabilities, cost-effectiveness and regulatory requirements. This allows manufacturers to quickly pivot their supply chains without major disruptions. Smaller manufacturers, in particular, face challenges when shifting suppliers, as they lack the economies of scale and automation advantages of larger firms. AI-driven analytics can help these companies identify the most feasible supply chain adjustments, whether by diversifying suppliers, nearshoring production or modifying component sourcing to mitigate tariff exposure. Tariff engineering is the strategic modification of a product’s design, composition or sourcing to qualify for lower-duty classifications. AI enhances this process by analyzing historical tariff rulings, trade agreements and HS code structures to identify opportunities for tariff optimization. By leveraging AI-driven insights, manufacturers can explore ways to legally adjust materials or assembly locations to minimize tariff costs while maintaining compliance. For example, if a steel component incurs a high tariff but an alternative composite material falls under a lower-duty classification, AI can flag this opportunity and recommend a viable material substitution. Similarly, AI can assess whether minor product modifications—such as unassembled versus pre-assembled shipments—can result in lower tariff rates. By continuously analyzing tariff structures and trade agreements, AI empowers manufacturers to implement cost-saving design and sourcing strategies while maintaining regulatory compliance. Accurate classification under the Harmonized System (HS) is crucial for determining correct tariff rates, but misclassification can lead to hefty fines and shipment delays. AI-powered classification tools use deep learning to analyze product descriptions, assign accurate HS codes and cross reference historical tariff decisions, reducing compliance risks while saving time and resources. Automated workflows further streamline compliance by integrating with enterprise resource planning (ERP) and trade management systems, ensuring that product classifications are consistently updated across an organization. This reduces human error, accelerates customs clearance and minimizes regulatory penalties. Trade compliance requires meticulous documentation, and AI can streamline this process by automating the generation and verification of required paperwork. AI-driven systems ensure that import and export documentation is accurate and complete, reducing errors that could lead to shipment delays or customs penalties. Additionally, AI can optimize duty drawback claims by identifying overpaid tariffs and automating the reimbursement process, improving cash flow for manufacturers. AI enables manufacturers to adjust pricing in real time based on tariff fluctuations, supplier costs and market conditions. By analyzing procurement data, transportation costs and regional tariff structures, AI-driven tools can identify cost-saving opportunities, suggest supplier diversification and optimize profit margins without compromising competitiveness. In industries like automotive and home construction, where metal tariffs can significantly raise material costs, dynamic pricing models allow companies to remain profitable while maintaining competitive pricing. For example, rising costs for steel screws, wires and machine parts could increase the price of dishwashers, dryers and homebuilding materials. AI-powered pricing tools help manufacturers adjust strategies in response to these shifting cost structures. Trade compliance isn’t just a legal issue, it affects procurement, finance, sales and operations. AI-driven platforms centralize trade data, providing real-time visibility across departments. With automated dashboards and customized reporting, AI ensures that all stakeholders work from the same dataset. When teams work from the same playbook, they can make faster, more strategic decisions to mitigate risks and capitalize on opportunities. Trade policies will continue to evolve, but manufacturers that integrate AI into their operations will be best positioned to thrive. The companies that win in this environment won’t be the ones waiting for policy stability, rather they’ll be the ones using technology to stay ahead of the curve.

factory

02 April 2025

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Mazda To Build Battery Module Plant In Japan

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