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President Donald Trump’s tariffs on steel imports this week could wreak havoc on American auto manufacturing, industry leaders say. The moves align with the Trump administration’s aggressive global trade agenda and ambitions to strengthen U.S. industry, but they could have an inverse effect. On March 12, all steel imports will be taxed at a minimum of 25%, the result of two orders the president signed Monday that also include a 25% tariff on aluminum. That could have a serious impact on domestic auto companies including Ford, GM and Stellantis and make these companies’ vehicles more expensive for the nation’s car buyers. Tariffs on crucial products coming from outside of the U.S. places pressure on domestic sourcing of the materials, experts say. The basic rules of supply and demand could drive up costs. Steel producers have to find ways to increase capacity, and aluminum and steel might be in short supply in the short term, said Sam Fiorani, analyst at AutoForecast Solutions, which studies the industry. Producing vehicles has a lot of moving parts, and raising the price of what is among the most important components of the vehicle is only going to raise the price of an already expensive product. The average transaction price for a new vehicle in the U.S. in January was $48,641, according to auto-buying resource Kelley Blue Book a hefty investment for an inflation-sensitive consumer. Tariffs such as these do nothing to enhance the automotive industry directly, Fiorani said. To Ford CEO Jim Farley, Trump’s early actions in office which also include 25% tariffs on goods coming from Mexico and Canada, although delayed by a month are already challenging the Dearborn, Michigan, automaker. The Trump administration has also upended electric vehicle policy put in place under former President Joe Biden, targeted EV charging infrastructure, as well as directed review of vehicle emissions and fuel economy rules all of which could play a role in automaker plans to decarbonize. Already, auto companies have pulled back some electrification plans amid shifts in the market. Most of the three automakers steel and aluminum already comes from North America, Ford included; CFO Sherry House noted Tuesday during a Wolfe Research conference that 90% of the company’s steel comes from the U.S., and that aluminum is also not that competitive. Still, Farley said Tuesday during the same conference that So far what were seeing is a lot of cost, and a lot of chaos.” Farley said: The reality is, though, our suppliers have international sources for aluminum steel. So that price will come through and it may be a speculative part in the market where price would come up because the tariffs are even rumored. A spokesperson for Ford deferred to Farley’s comments when reached out to for additional comment. A spokesperson for Stellantis declined to comment. GM did not respond to request for comment before publication. Were concerned about the downstream effects on consumer products like automobiles, said Glenn Stevens Jr., executive director of MichAuto, a state auto industry association. The concern whenever you have a scenario like this, and Im not an economist, but I follow this very closely, is that the short-term benefits of higher prices for steel and aluminum for domestic production are outweighed by a decrease in downstream effects. The auto industry, its a very competitive business,” he added. “You cant change supply chains very quickly and you certainly cant change manufacturing locations very quickly. Trump also placed tariffs on steel and aluminum in 2018 during his first stint in the White House. Automakers had to revise their financial plans for the year as their outlooks fell as a result, according to Fiorani. Industries like automotive have built their entire financial plan based on sourcing products where they can; locally, if its possible, globally, if it makes the most sense, he added. Interfering with the natural order of things slows down the progress and raises costs. ___ Associated Press reporter Isabella Volmert contributed to this report from Lansing, Mich. ___ Alexa St. John is an Associated Press climate solutions reporter. Follow her on X: @alexa_stjohn. Reach her at ast.john@ap.org. ___ Read more of APs climate coverage at http://www.apnews.com/climate-and-environment ___ The Associated Press climate and environmental coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find APs standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org. Alexa St. John, Associated Press
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E-Commerce
It has been a rough 2025 for Tesla investors so far. After the companys stock price (Nasdaq: TSLA) hit an all-time high of over $488 per share in December 2024pushing Elon Musks net worth to north of $400 billionTesla shares have plummeted. As of yesterdays close, a day that saw TSLA shares dip more than 6% in a single trading session, the stock price has fallen over 18% since the new year alone But much of 2025s decline has happened since a specific date: January 21, the first trading day after President Donald Trump was sworn into office for a second term and one day after the president signed an order creating the Elon Musk-led Department of Government Efficiency (DOGE). Since then, Tesla shares have fallen from a post-inauguration Monday high of over $433 per share to below $329 per share as of yesterday’s close, according to data from Yahoo Finance. So, what is precipitating this stock price fall? Here are some likely possibilities. Is DOGE harming Teslas brand? Its hard not to look at the $100 price drop since DOGE was created and started wreaking havoc across federal government agencies and believe there may be some causation. As a matter of fact, detractors of Elon Muskand those who outright loathe himwould probably be quick to jump to the conclusion that Musks DOGE antics are the reason Teslas stock price is sinking. This isnt to say these people are wrong. Its very, very difficult to see how Musks DOGE involvement isnt alienating many of the companys more affluent, eco-friendly, liberal progressives who were among Teslas core customers. However, it is probably too early to proclaim that any such alienation has already materially affected Teslas bottom lineyet. After all, its only been three weeks since DOGE came into creation and its not like Tesla gives a running daily tally on how many cars it sells. So we don’t know if or how much Tesla sales have actually declined since the creation of DOGE. However, many Tesla investors are likely worried about Musks DOGE involvement, and the negative press the department has received may harm Tesla sales now and into the future. Worried investors tend to sell stockespecially to lock in any existing gains before the future brings pain to the share price. Given this, it seems reasonable to believe that Teslas declining share price since January 21 is at least somewhat a reflection of investors fears and anxieties over Musk and DOGE tarnishing the companys once-stellar reputation. Musks involvement in far-right politics in Europe Another possibility for Teslas recent share price fall may be related to Musks actions outside of the United States. In recent months, Musk has inserted himself into the politics of many European nations, most notably Germany, where he has used his own personal brand to boost the far-right Alternative für Deutschland (AfD) party, proclaiming on his X social media platform in December that Only the AfD can save Germany. Musks increasing involvement in far-right politics in Europe has caught many by alarm (or, as Bill Gates put it, Musks involvement was insane shit). And there is some evidence that Musks European antics may be harming Tesla sales on the continent. As the German broadcaster Deutsche Welle (DW) reported, Tesla sales plunged in Germany by nearly 60% in January. The Financial Times has reported that Tesla sales are plummeting in other European nations as well, with sales in France down 63% in January versus the same month a year earlier, and Reuters reporting that Tesla registrations were down in Sweden by 44% and in Norway by 38% in January versus the same month a year earlier. Is Musks association with far-right politics on the continent to blame? At the very least, it seems that Tesla investors are right to have concerns. When people start labeling your vehicles as swasticars, your brand might have an image issue. Increased EV competition Of course, investors could have other reasons to be bearish on Tesla stock. The most obvious is that the company is facing increasing competition around the globe. Long gone are the days when Tesla was the only electric vehicle maker on the market. It now has robust competition both at home and abroad. That includes Chinaone of Teslas most important markets. Yesterday, a large reason Tesla shares slid over 6% was due to the announcement that Chinese EV maker BYD would integrate DeepSeeks AI into its vehicles to help assist drivers with piloting the cars. This driver-assisted DeepSeek integration provides BYD with a major advantage over Tesla in China now. Driver-assist technologies cant be integrated into cars in China without regulators’ approval. Now, one of Teslas biggest competitors in the country can provide the popular technology to consumers. As CNBC notes, Teslas driver-assist technology, Full-Self Driving, has yet to receive rollout approval from Chinese regulators.
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E-Commerce
Rain-parched Southern California finally received some much-needed precipitation recently, offering some relief from the Los Angeles wildfires which displaced more than 150,000 people from their homesand either razed or damaged some 15,000 structures. Of course, not everyone jumped to help. But amid the widespread devastation came what seems like, in our socially and politically fraught times, an unlikely ray of hope: A convergence of communities, of neighbors helping each other in whatever way possible and even heading out to assist complete strangers. The goodwill and altruism born from this calamity has been a boon to exhausted and overwhelmed firefighters and public resources. But why does it seem to take epic disasters to bring people together in the first place? Social behavior and trauma Psychological research provides fascinating insights into that very question. One particularly influential paper published in the American Journal of Orthopsychiatry in 2008 dubs this phenomenon of charity and communal support altruism born of suffering. Research on altruism has focused on its positive roots, whereas research on the effects of victimization and suffering has focused on aggression and difficulties in functioning, write the study authors. However, anecdotal evidence, case studies, and some empirical research indicate that victimization and suffering can also lead people to care about and help others. One of the papers authors, prominent psychologist and professor emeritus Ervin Staub at UMass Amherst, has expounded on his findings in the years since, noting the real-world evidence from studies of peoples social behavior following a traumatic event, such as the 2004s devastating earthquake and tsunami in the Indian Ocean. In one study, some participants reported that they have suffered because of abuse or violence against them in their families, because of harmful behavior against them as members of a group, or because of natural disasters, Staub wrote in Psychology Today. Months later they expressed more empathy with, and feelings of responsibility for helping people affected by the tsunami in Asia in 2004, and volunteered more to collect donations for them, than people who reported that they had not suffered. They also volunteered more for causes that involved helping people. Tightening communities A trio of experts who spoke with Fast Company added further context to the social psychology of collective trauma events, group identity during times of disaster, and community cohesion after mass tragedies which helps explain this sudden impulse toward altruism and empathy. There are place communities like we had in Altadena, and that’s very meaningful, and it’s not something that everyone has. But there are also these other kinds of communities of identity, you know, like people will say, I belong to the gay community, or I belong to the community around a particular organization, says John Brekke, professor emeritus at the USC School of Social Workand, incidentally, an Altadena resident whose own home was greatly damaged by the recent wildfires. So, you know, it’s interesting when you see people who all of a sudden come together around this almost community of disaster, in a way, they feel themselves. They can be a part of something by participating in this community of helpers, really, either through giving money or lending time or actually taking people in, and that act of giving at the community level seems to be as meaningful as literally giving to someone that you’re right next to who needs some help. Theres a neurobiological aspect to this, too, Brekke says, explaining that, it not only feels good from a spiritual point of view, if people are being spiritual, but it also feels good from a psycho-biological perspective, because you get a rush of great stuff into your system when you are being empathic and when you are giving to others. This includes biochemical releases of things like serotonin and oxytocin, which lead to feelings of contentment, well-being, and connection. Individualism and identity Unfortunately, whether that feeling of empathy and good will persists after a collective traumatic event like the wildfires is a more complicated question. Some of that has to do with American societal values. American mainstream society is about rugged individualism, says Jorja Leap, a professor of social welfare and executive director of the UCLA Social Justice Research Partnership. Here you’re an individual, you’re taught. Whether it’s the frontier, whether it’s space travel, whether it’s running for office, we look at individual personality and individual strengths, and we tend to lift that up more than the idea of community, so people are expected to make it on their own. So, while disasters such an earthquake or war may bring people together, there can be an ensuing cynicism, she adds. (Case in point: The ongoing battle over fire insurance and which communities houses will be rebuilt in Los Angeles.) We may be incredibly altruistic and responsive and then incredibly cynical, and sometimes that cynicism is self-protective. I really believe that cynicism is just cover up for fear, adds Leap. Another expert, Alison Holman, a professor at the UC Irvine School of Nursing and UCIs School of Psychological Science, has extensive experience researching the effects of individual and collective traumas, including Southern California wildfires. Like USCs Brekke, she believes identity is a key factor that drives empathy and altruism during crisis moments. What may be happening is that people identify, to some extent, with the people, the victims, she says. We have found in our work that identifying with victims is really something that helps to encourage people to engage in pro-social behavior. So, when people identify with them, meaning, ‘Oh my God, I lived there, I lived in that area,’ or, ‘Oh my God, I’ve lost my home,’ or, ‘Oh my God, I know what it’s like to be threatened by that,’ it may just instigate in people that sense of identification that would make them want to help out. Thats certainly a phenomenon playing out in Los Angeles at the moment. Whether it leads to lasting change in people and more community engagement after the blaze, and in an era where climate change is expected to lead to ever-cascading calamities, is a more open question.
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E-Commerce
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