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US cities located in states won by Trump would be most hurt by Canadian tariffs, an analysis finds

WASHINGTON (AP) — The U.S. cities most vulnerable to a with turn out to largely be in the states that helped return Donald Trump to the White House — a sign of the possible political risk he’s taking with his tariff plans.

A new analysis released Thursday by the Canadian Chamber of detailed the areas most dependent on to Canada, with San Antonio and Detroit topping the list of 41 U.S. metro areas. The findings show that the United States’ 25% tariffs on Canada and Canada’s retaliations could inflict meaningful damage in key states for U.S. .

The analysis was conducted before the Republican president announced Wednesday that he was placing additional 25% tariffs on imported autos and parts starting on April 3.

“The consequences of today’s escalation in this destructive tariff war will not be contained to Canada, as much as the U.S. administration would like to pretend,” said Candace Laing, president and CEO of the Canadian Chamber of Commerce. “Throwing away tens of thousands of jobs on both sides of the border will mean giving up North America’s auto leadership role, instead encouraging companies to build and hire anywhere else but here. This tax hike puts plants and workers at risk for generations, if not forever.”

Nearly half of what San Antonio exports, with its aerospace, auto and sectors, goes to Canada. About 40% of what the auto-driven Detroit area exports also goes to Canada. Trump’s wins in Michigan, Pennsylvania and Wisconsin were crucial for his overall victory in November’s presidential election — and Milwaukee and Pittsburgh also rank in the top 10 for exposure to a war with Canada.

Other cities most dependent on exports to Canada include Kansas City, Missouri; Louisville, Kentucky; Nashville, Tennessee; Columbus, Ohio; Chicago; and Cleveland. All of those states aside from Illinois backed Trump in the last election.

Trump has placed 25% tariffs on many goods from Mexico and Canada, with a lower 10% tax on energy products from Canada. Some of those have been suspended or delayed, though they’re set to fully hit in April.

Canadian leaders have warned that the United States would suffer in the form of higher prices, fewer jobs and slower growth because of the trade war. But an analysis by the Brookings Institution found that the economic pain would be more severe in Mexico and Canada because those countries are more reliant on the United States in terms of trade.

Trump’s stated reason for the tariffs is to stop illegal immigration and drug smuggling, though he’s also said that he dislikes the trade deficit with both countries and has taunted Canada by suggesting that it could become the 51st U.S. state.

Stock market today: Wall Street slips following Trump’s latest tariffs, despite solid economic data

NEW YORK (AP) — edged lower Thursday after getting pulled in opposite directions as President Donald Trump’s latest tariff escalation creates winners and losers among auto stocks.

The slipped 0.3% after drifting between small gains and losses several times through the day. Better-than-expected data on the economy also helped support the market. The Dow Jones Industrial Average dipped 155 points, or 0.4%, and the Nasdaq composite fell 0.5%.

General Motors sank 7.4% for one of the market’s sharper losses after Trump announced 25% on imported cars. Ford Motor dropped 3.9%.

Even U.S. automakers selling vehicles in the country can feel the pain of such tariffs because their supply chains are spread throughout North America. Trump says he wants more to take place within the United States.

“There are still a lot of unknowns, but if this remains in place, there will clearly be some pain for the companies to digest,” according to UBS analyst Joseph Spak.

Among the uncertainties are how the U.S. government will determine how to apply tariffs to parts that are compliant with the free- agreement that the United States and Mexico and have, but are not made entirely within the United States. Tracking parts could be difficult, according to Spak.

Automakers based outside the United States also sank. In Seoul, Hyundai Motor dropped 4.3%. In Tokyo, Honda Motor fell 2.5%, and Toyota Motor lost 2%.

But U.S. electric-vehicle makers Rivian and Tesla held up much better. They look to face less pressure from Trump’s tariffs because more of their production happens in the United States.

Rivian rallied 7.6%, and Elon Musk’s Tesla added 0.4% after paring an earlier, bigger gain.

Companies that could benefit from drivers opting against buying new cars also revved higher. Among auto parts retailers, AutoZone gained 4%, and O’Reilly climbed 3.1%. CarMax, which sells used autos, rose 2.5%.

Expectations are high for stock markets worldwide to remain shaky as an April 2 deadline approaches for tariffs. That’s what Trump has called “Liberation Day,” when he will roll out tariffs tailored to the United States’ trading partners. In each case, he said the “reciprocal” tariff will match the burden the other country places on the United States, including things like value-added taxes.

Hopes are still high that Trump may ultimately opt for more targeted or milder tariffs that are less painful for the global than feared. But even if he does, all the talk about tariffs has already made U.S. consumers and businesses feel more cautious and pessimistic. If such sour moods convince them to pull back on their spending, it could hurt the economy.

So far, the economy has seemed to be holding up.

One report on Thursday said slightly fewer workers applied for unemployment benefits last week than economists expected. It’s the latest sign the job market may be settling into a “low fire, low hire” state.

A second report said the U.S. economy’s growth during the final three months of last year was slightly stronger than earlier estimated.

The better-than-expected data helped Treasury yields in the bond market remain relatively steady. The yield on the 10-year Treasury edged up to 4.36% from 4.35% late Wednesday.

On Wall Street, Petco Health & Wellness jumped 31.6% after the retailer reported slightly stronger results for the latest quarter than analysts expected.

All told, the S&P 500 slipped 18.89 points to 5,693.31. The Dow Jones Industrial Average dropped 155.09 to 42,299.70, and the Nasdaq composite fell 94.98 to 17,804.03.

In stock markets abroad, indexes fell across much of Europe after finishing mixed in Asia.

Japan’s Nikkei 225 fell 0.6% following the losses for many of its automakers, and Japanese Prime Minister Shigeru Ishiba said Thursday, “We strongly request that tariff measures not be applied to Japan.”

In , stocks rose 0.1% in Shanghai and 0.4% in Hong Kong.

Chinese automakers and parts manufacturers have been expanding sales around the world, but not in the United States, so any impact from the tariffs announcement would be an indirect one.

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AP Business Writers Yuri Kageyama and Matt Ott and AP Videographer Ayaka McGill contributed.

Merrick leaving as state commerce secretary

Caren Merrick, Virginia’s and secretary, said in a LinkedIn post that she is leaving ‘s administration. According to a Washington Post story Thursday, Merrick turned down the job of state secretary of natural resources.

The Post reported that Youngkin offered Merrick the natural resources job in order to name her chief deputy commerce secretary, , to the top job. Segura, the son of billionaire Enrique Segura, ran for a Loudoun County seat in the Virginia Senate as the Republican opponent of Russet Perry, a former prosecutor and CIA officer, losing the 2023 race by about five points.

According to the Post, Merrick agreed to be secretary of natural resources, which has some overlap with the commerce department, including the Department of Environmental Quality and the Department of Conservation and Recreation, but that at some point, she changed her mind and decided to resign from the administration.

Merrick joined Youngkin’s administration in 2022 shortly after he took , after she served as CEO of his nonprofit Virginia Ready initiative, which promoted development during the early days of the COVID pandemic. She and her husband, Phillip Merrick, founded webMethods, a software company that grew swiftly during the mid-1990s tech boom and was sold to Software AG in 2007 for $546 million. She also is a partner in NextGen Venture Partners, a startup firm.

The governor’s office confirmed Segura’s appointment as commerce secretary in an announcement Thursday afternoon, as well as naming Stefanie Taillon the state’s next secretary of natural and historic resources.

On her LinkedIn page Wednesday night, Merrick wrote, “Three years ago, I embarked on an incredible journey as Virginia’s in Gov. Glenn Youngkin’s administration. Working alongside Gov. Youngkin and his exceptional team has been a privilege and a defining chapter in my life.”

Among the accomplishments she cites are “surpassing $100 billion in capital investments, facilitating the launch of 15,000 high-wage high-growth startups at an unprecedented pace, and securing the prestigious title of America’s Top State for Business by CNBC.”

“As I transition back to the private sector, I eagerly anticipate contributing to Virginia’s burgeoning , fostering growth, and supporting thriving communities,” Merrick concluded in her post.

“When I nominated Caren to be secretary of commerce and trade, I sought a key partner to help us jumpstart Virginia’s economic engine. Since then, more Virginians working than ever before and more than $100 billion in capital commitments from companies wanting to build their future in Virginia. Her leadership and vision have been instrumental to Virginia’s success,” Youngkin said in a statement. “As chief deputy secretary, Juan Pablo Segura is the right person to lead the commerce and trade team moving forward. His extensive private sector experience and his proven track record within the commerce and trade secretariat will ensure we continue to drive forward keeping Virginia the very best place to do business.”

Segura co-founded Babyscripts, a startup that produced an app to improve care for expectant mothers. The company was named a finalist for the EY Entrepreneur of the Year mid-Atlantic award in 2019 and participated in partnerships with Cigna, Philips International, General Electric and the March of Dimes.

According to a statement from the company, Segura left Babyscripts in January 2023 after declaring his state Senate candidacy. In 2024, he was named the state’s chief deputy secretary of commerce. Outside of work, Segura has served on the boards of Youth for Tomorrow, Volunteers of America, Catholic University’s business school and the Spanish Catholic Center in Washington, D.C.

Taillon joined the Youngkin administration as deputy secretary of the Department of Natural and Historic Resources and has been the acting secretary since the departure of Travis Voyles, who is now assistant deputy administrator at the Environmental Protection Agency under .

Taillon was previously associate director of governmental relations for the Virginia Farm Bureau Federation and received a bachelor’s degree in animal and poultry sciences and a master’s of public administration from Virginia Tech.

Governor signs landlord sexual extortion bill

RICHMOND, Va. — recently signed a bill that will charge landlords who threaten renters with sexual extortion with a Class 5 felony . Del. Wendell Walker, R-, introduced House Bill 1998 to offer renters more protection from landlords who make malicious threats such as housing or financial loss, and property damage, in order to engage in sexual intercourse.

Sexual assault can occur in ways other than nonconsenusal sex, and include situations of threat, intimidation, physical helplessness or mental incapacity, according to current Virginia .

Walker told lawmakers that current law does not protect from threats to someone’s housing , which is a detriment to the victim’s financial and living situation. The bill ensures housing and financial manipulation will be recognized as a form of sexual extortion, Walker said.

Lynchburg Commonwealth’s Attorney Bethany Harrison advocated for the bill and collaborated with Walker.

“I had a case in Lynchburg within the past five years that came to our that we could not proceed with, that involved a sexual assault between a and a couple of tenants,” Harrison said. “So that’s where I brought this idea to Del. Walker and he came up with the sexual exploitation bill.”

There was also another case in a neighboring county that involved a landlord threatening eviction for sex, she said.

The bill contends with an area of sexual assault not yet covered, Harrison told the House Criminal Subcommittee on Jan. 31. Victims need protection against financial threats, not just physical harm, she said. Walker introduced the same bill in 2024, but it did not advance from the House of Justice Committee. This year it passed both chambers unanimously.

The bill also creates a felony for violations against people younger than 15 years of age. This punishment ranges from one to 20 years and a fine of no more than $100,000.

“It is a bill that is helpful to our victims of crime,” Harrison said. “Given that within the past couple of years, we had a sexual exploitation law that passed and this bill adds to that law.”

The Class 5 felony charge aligns with existing sexual exploitation charges, according to Harrison. Individuals found guilty of a Class 5 felony face a prison sentence of at least one year, but no more than 10 years. A jury or court can opt for a jail sentence of no more than 12 months and a fine of not more than $2,500, either or both. That means a perpetrator found guilty could pay only a fine for the crime.

The bill will go into effect starting July 1.

Capital News Service is a program of Virginia Commonwealth University’s Robertson School of Media and Culture. Students in the program provide coverage for a variety of media outlets in Virginia.

Lynchburg’s BWXT unveils Innovation Campus

On Wednesday, , federal and state officials and executives, engineers and employees of -based gathered to celebrate the official opening of the company’s new Innovation Campus.

“The IQ level in this room is really high,” Youngkin joked.

Set on 11 acres in , BWXT’s Innovation Campus (which shares a name only with Virginia Tech’s Innovation Campus in Alexandria) includes 170,000 square feet of offices and space, which will house laboratories where the company’s Advanced Technologies business unit will design, build and test advanced nuclear systems for its clients, which include NASA, the Defense Department and commercial businesses.

With roots dating back to the mid-19th century, BWXT manufactures nuclear reactors, fuel and components. In 2021, then-Gov. Ralph Northam announced plans for BWXT’s $65 million Innovation Campus. The plan was to build a facility that would house 150 employees and serve as a research, development and production center for new microreactors and nuclear fuels.

Earlier that same year, Youngkin, then a candidate for governor, visited the Advanced Technologies team in Lynchburg at the invitation of BWXT President and CEO Rex D. Geveden.

Having Youngkin back on BWXT’s turf Wednesday, Geveden said, felt like “a full-circle moment.”

In 2021, BWXT’s Advanced Technologies unit had a business backlog of about $10 million , the company head explained Wednesday. Since then, he noted, the team has won $700 million in technology contracts. Now, it has more than 350 team members. “We’ve more than doubled the size of the organization,” Geveden said.

In a 2020 deal, BWXT divested its U.S.-based commercial nuclear services business to Lynchburg’s Framatome and acquired the 11 acres and a 118,000-square-foot building on Mt. Athos Road. That building was renovated and expanded to become the Innovation Campus.

To support development of the campus, BWXT received local and state tax grants worth up to $2 million, which are dependent on the company investing $65 million in the project and adding 97 jobs with salaries averaging $116,000 by the end of this year. 

By the end of 2024, BWXT had made considerable progress toward that goal, making $51 million in investments and hiring more than 115 employees, according to a company announcement.

Youngkin said Wednesday that since moved into the White House, he has had more meetings than he “can possibly count” with members of the new administration.

“They firmly believe that the future of military propulsion, the future of space exploration, the future of our national to win the war of intelligence, the future of making sure that [when a health care provider at a hospital NICU] turns on a light, that it comes on … it is all grounded in nuclear,” Youngkin said.

BWXT will be able to help meet those demands and provide solutions for Virginia, which expects demand for energy to grow exponentially if continue to be developed at the current pace, Youngkin added.

“I’m sorry [to] the rest of our national labs, [but] there’s no place else in the nation that is more prepared to step into this moment, to forge ahead at an expedited pace and deliver … the next generation of nuclear power into Virginia and America and the world,” the governor said of BWXT.

In September, DOD announced it had broken ground at the Idaho National Laboratory in preparation for the construction of the Project Pele transportable nuclear reactor, which is being manufactured by BWXT Advanced Technologies in Lynchburg.

“It is expensive, it is large, it is heavy, it is complicated,” Jeff Waksman, program manager for the Strategic Capabilities Office in the Office of the Secretary of Defense, said at the Innovation Campus event Wednesday. “It’s taking a long time.”

The goal, Waksman said, isn’t to build the one reactor, however. “If we just build one and it’s just a museum piece, then we have failed,” he said. “We have to make this a real ecosystem.”

Additionally, BWXT is working with Maryland’s Lockheed Martin to complete the final design of a nuclear reactor to be used in the first demonstration spacecraft using nuclear thermal propulsion known as the Demonstration Rocket for Agile Cislunar Operations, or DRACO.

“We are well past the paper reactor phase, and we are building real hardware at relevant scale that was developed on aggressive schedules,” Kate Kelly, director of space and emerging programs at BWXT Advanced Technologies, said Wednesday. “This is creating a path to deployment where we see the reality of sending these systems to space in the next several years.”

 

Virginia Chamber’s DuVal to lead new ITA venture

Newport-News based government contractor announced Wednesday that Virginia Chamber of CEO will be the new president and CEO of , a newly created company designed to help ITA International expand.

ITA International CEO Mike Melo said ITA Growth Partners will officially launch operations on April 1. The goal of this new company is to acquire and grow small -owned businesses across all sectors on behalf of ITA International. Melo told Virginia Business the target companies would complement ITA International and its existing customer base.

DuVal announced in September 2024 that he planned to retire from the chamber in early 2025.  Cathie J. Vick will take over as the chamber’s new leader, starting April 1.

In his new role with ITA, DuVal will lead outreach to veteran-owned small businesses and entrepreneurs and focus on owner transitions, acquisition strategies, evaluations and exit strategies.

“I am excited to begin this new chapter with ITA International and to lead ITA Growth Partners in its mission to support veteran-owned small businesses,” said DuVal in a statement. “ITA has a proven track record of turning challenges into opportunities, and I look forward to working with this talented team.”

DuVal has decades of public and private sector experience, having previously served as mayor of from 1990 to 1996, for Virginia from 1998 to 2002 and most recently as the Virginia Chamber of Commerce’s president and CEO.

During his almost 15 years with the Chamber of Commerce, the chamber grew from under 1,000 members to over 33,000 and launched key initiatives like the Blueprint Virginia plan and the WiseChoice Healthcare Alliance.

“We are thrilled to welcome Barry to the ITA family,” said Melo in a statement. “Barry’s reputation as a dynamic leader who has transformed organizations and championed economic development aligns perfectly with our vision to support veterans in the community.”

In a previous announcement about the formation of ITA Growth Partners, Melo described veteran entrepreneurs as “the kind of high-performance leaders we want to invest in,” saying they are trained to solve complex problems, lead under pressure and adapt to change.

“ITA Growth Partners is our way of betting on their success and providing the capital and resources to accelerate their growth,” he said in a statement.

Headquartered in Newport News, ITA International offers services in a wide variety of areas, including data analytics, intelligence, logistics and technical support. It has 185 employees. The newly formed ITA Growth Partners will initially have five or six employees, some of which will also be working for ITA International.

Federal judge struggles with scope of relief for fired workers

BALTIMORE (AP) — A federal judge in Maryland said Wednesday he will at least briefly extend a temporary order requiring the Trump administration to bring back who were fired as part of a dramatic downsizing of the federal , but the judge said he was struggling with the scope of a broad order.

U.S. District Judge James Bredar said he had “great reluctance” to issue a sweeping national preliminary injunction in the case, where 19 states and the District of Columbia contend they have been harmed by a large-scale reduction in the federal workforce without warning as required by .

Bredar asked attorneys for plaintiff states and the to submit supplemental documents by 10 a.m. Thursday on the question of the ramifications for the 19 states seeking relief and the 31 states that are not parties to the case.

During a hearing in Baltimore, Bredar said “there’s a lot of things wrong with national injunctions, just on a jurisprudential level, and and commentators are all over the issue.”

“That doesn’t mean the court won’t enter one, if the circumstances and law on this case compel it, but I’m going to resist doing it,” Bredar said. “You’re going to have to show me that it’s essential to remedying any harms that your clients are specifically experiencing.”

The case is complicated by the fact that some federal employees may work a job in a state that is a party to the lawsuit, while they may live in a state that isn’t. An example is in the Washington area, where an affected federal worker might live in Virginia, which isn’t one of the states in the complaint, but work at a federal job in Maryland or the District of Columbia, which are parties in the lawsuit.

In the meantime, the judge said he planned to extend a temporary restraining order he issued last week that required the federal government to reinstate more than 24,000 federal workers. The order expires Thursday night, but the judge said he would extend it “at least briefly, because I think it’s doubtful that given the work that still has to be accomplished that I could complete my opinion and any orders related to this before that TRO runs out.”

The government is appealing the case to the 4th U.S. Circuit Court of Appeals.

The appeals court last week denied the administration’s request for a stay of the temporary restraining order, since the district court held the Wednesday hearing. At the time, Judge Allison Jones Rushing took issue with the scope of district court rulings. She noted she was writing to “echo the growing concerns over district courts issuing nationwide injunctions to order redress for those who have not sought it.”

The administration is already appealing to the Supreme Court a similar order to reinstate probationary workers from a judge in California. The Justice Department argues that federal judges can’t force the executive branch to reverse its decisions on hiring and firing. Still, the government has been taking steps to rehire fired workers under those orders.

Both judges have found that the president can terminate probationary workers but determined the administration violated the law in the way they carried out the .

Bredar previously found that firings amount to a large-scale reduction in force that’s subject to specific rules, including giving advance notice to states affected by the layoffs.

His ruling came in a lawsuit filed by 19 states that contend the Trump administration blindsided them with the layoffs, which could have devastating consequences for their state finances.

The Trump administration, on the other hand, argues that the states have no right to try and influence the federal government’s relationship with its own workers. Republican President Donald Trump claims the cuts target fraud, waste and abuse in a bloated federal government.

Probationary workers have been targeted for layoffs across the federal government because they’re usually new to the job and lack full civil service protection. Multiple lawsuits have been filed over the mass firings.

The states suing the Trump administration include Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont, and Wisconsin. The District of Columbia also is a plaintiff.

Copper prices have soared as the US threatens tariffs on the metal and China boosts its economy

NEW YORK (AP) — prices have hit record highs as an ongoing between the U.S. and its key trading partners threatens to squeeze supplies of the vital metal.

Buyers in the U.S. have been stocking up on copper ahead of potential . Future prices for the base metal hit $5.21 per pound on Tuesday. Prices are up about 30% so far this year, following modest gains over the last several years.

has threatened to impose a tariff of up to 25% on all copper imports and has called for increasing U.S. production. , the world’s largest importer of copper, is embarking on a stimulus program that could further increase demand for the base metal.

“Tariff threats, tightening supply, and stimulus-fueled optimism for an economic rebound in China have underpinned a rally in copper.” said Adam Turnquist, chief technical strategist for LPL Financial.

Copper is critical to infrastructure around the world. It goes into cords for electronic devices, transmission lines, batteries, and LED lights. A global shift to cleaner energy technology, such as solar power, had already been boosting demand, which is expected to keep growing as the development of artificial intelligence technology puts more of a strain on and the energy grid.

“When you look at the uses of copper in today’s , those uses and the intensity of use of copper in today’s economy are growing,” said Kathleen L. Quirk, President and CEO of mining giant Freeport-McMoRan, at a recent conference for the global industry.

The International Energy Agency expects demand for the base metal to rise 20% to 31,128 kilotons by 2030 and by 41% to 36,379 kilotons by 2040. The U.S. mined about 1.1 million tons of copper in 2024. It currently lags the top producers, including Chile, Peru and China.

Copper mining companies are gaining ground amid rising demand. Shares of Freeport-McMoRan, which operates most of its open-pit copper mines in the U.S., are up 12% this year. Southern Copper, which has operations in Mexico and Peru, is up 8% for the year. The broader market has been slipping, with the down about 2%.

The rising price of copper has a potential downside for some businesses and consumers.

The construction industry, including homebuilders, could face a tighter financial squeeze because of copper’s rising cost as demand fails to keep pace with supplies. Stubborn inflation has already pushed home construction costs higher. Total construction costs for a single-family home rose just under 9.2% in 2024 from the previous year, according to the National Association of Homebuilders. Higher copper prices, coupled with higher prices for other key building materials such as lumber, could worsen inflation for the sector.

Appliances, electronics and other products containing copper could become more expensive, also fueling inflation and prompting consumers to cut back on spending for certain items.

Trump places 25% tariffs on auto imports

WASHINGTON (AP) — President Donald Trump said Wednesday he was placing 25% on auto imports, a move the White House claims would foster domestic but could also put a financial squeeze on automakers that depend on global supply chains.

“This will continue to spur growth,” Trump told reporters. “We’ll effectively be charging a 25% tariff.”

The tariffs, which the White House expects to raise $100 billion in revenue annually, could be complicated as even U.S. automakers source their components from around the world. The tax hike starting in April means automakers could face higher costs and lower sales, though Trump argues that the tariffs will lead to more factories opening in the United States and the end of what he judges to be a “ridiculous” supply chain in which auto parts and finished vehicles are manufactured across the United States, and Mexico.

To underscore his seriousness, Trump said, “This is permanent.”

Shares in General Motors fell roughly 3% in Wednesday trading. Ford’s stock was up slightly. Shares in Stellantis, the owner of Jeep and Chrysler, dropped nearly 3.6%.

Trump has long said that tariffs against auto imports would be a defining policy of his presidency, betting that the costs created by the taxes would cause more production to relocate to the United States while helping to narrow the budget deficit. But U.S. and foreign automakers have plants around the world to accommodate global sales while also maintaining competitive prices — and it could take years for companies to design, build and open the new factories that Trump is promising.

“We’re looking at much higher vehicle prices,” said economist Mary Lovely, senior fellow at the Peterson Institute for International Economics. “We’re going to see reduced choice. … These kinds of taxes fall more heavily on the middle and working class.”

She said more households will be priced out of the new car market — where prices already average about $49,000 — and will have to hang on to aging vehicles.

The tariffs on autos would start being collected on April 3, Trump said. If the taxes are fully passed onto consumers, the average auto price could jump by $12,500, a sum that could feed into overall inflation. Trump returned to the White House after losing the 2020 election in large part because voters believed he could bring down prices.

As Trump announced the new tariffs, he indicated that he would like to provide a new incentive to help car buyers by allowing them to deduct from their federal income taxes the interest paid on auto loans, so long as their vehicles were made in America. That deduction would eat into some of the revenues that could be generated by the tariffs.

The auto tariffs are part of a broader reshaping of global relations by Trump, who plans to impose what he calls “reciprocal” taxes on April 2 that would match the tariffs, sales taxes charged by other nations.

Trump has already placed a 20% import tax on all imports from for its role in the production of fentanyl. He similarly placed 25% tariffs on Mexico and Canada, with a lower 10% tax on Canadian products. Parts of the Mexico and

Canada tariffs have been suspended, including the taxes on autos, after automakers objected and Trump responded by giving them a 30-day reprieve that is set to expire in April.

The president has also imposed 25% tariffs on all steel and aluminum imports, removing the exemptions from his earlier 2018 taxes on the . He also plans tariffs on computer chips, pharmaceutical drugs, lumber and copper.

His taxes risk igniting a broader global with escalating retaliations that could crush global , potentially hurting economic growth while raising prices for families and businesses as some of the costs of the taxes get passed along by importers. When the European Union retaliated with plans for a 50% tariff on U.S. spirits, Trump responded by planning a 200% tax on alcoholic beverages from the EU.

Trump also intends to place a 25% tariff on countries that import oil from Venezuela, even though the United States also imports oil from that nation.

Trump’s aides maintain that the tariffs on Canada and Mexico are about stopping illegal immigration and drug smuggling. But the administration also wants to use the tariff revenues to lower the budget deficit and assert America’s preeminence as the world’s largest .

The president on Monday cited plans by South Korean automaker Hyundai to build a $5.8 billion steel plant in Louisiana as evidence that tariffs would bring back manufacturing jobs.

Slightly more than one million people are employed domestically in the manufacturing of motor vehicles and parts, about 320,000 fewer than in 2000, according to the Bureau of Labor Statistics. Another 2.1 million people work at auto and parts dealerships.

The United States last year imported nearly 8 million cars and light trucks worth $244 billion. Mexico, Japan and South Korea were the top sources of foreign vehicles. Imports of auto parts came to more than $197 billion, led by Mexico, Canada and China, according to the Department.
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Associated Press writer Paul Wiseman contributed to this report.

Kastle takes majority stake in Mich. security business

Kastle Systems, a solutions company, has taken a majority stake in i2G Systems, a Michigan-based electronic security service provider firm. Kastle did not clarify the amount of the .

“Kastle’s strategic investment in i2G — a majority stake — is the largest investment in our company’s 50-year history,” Kastle CEO Haniel Lynn said in a statement Wednesday. “i2G’s existing owners and management continue to have significant ownership in the business, ensuring a shared vision for the future.”

In an announcement distributed last week, Kastle, best known for developing security cards and systems for employees in , stated that making what it described as a “strategic investment” in i2G, which has an in , will strengthen its ability to deliver security solutions for high-risk facilities like and will broaden the company’s technology capabilities.

Photo of a man wearing a blazer and tie.
Mark Ein. Photo courtesy Kastle

“This strategic investment reflects Kastle’s commitment to continued expansion into fast-growing, high-security end markets looking for the most advanced technology solutions,” Kastle Chair Mark Ein said in a statement. “i2G’s rapid growth and reputation amongst their customers for best-in-class execution and service excellence are well-earned.”

An investor, entrepreneur and minority owner of the Washington Commanders, Ein purchased Kastle in 2007.

i2G, which was founded in 2013, will operate independently, with support from Kastle’s expertise and , according to the announcement.

“Kastle provides an exciting opportunity for our team and customers to grow while upholding our high standards of service and execution,” i2G CEO Jason Slocum stated.

Founded in 1972, Kastle’s security solutions are used at 3,600 properties and 41,000 businesses across the United States and Australia.