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Specter of Auto Tariffs Spurs Some Car Buyers to Rush Purchases

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Specter of Auto Tariffs Spurs Some Car Buyers to Rush Purchases

Ziggy Duchnowski spent Saturday morning car shopping along Northern Boulevard in Queens with two goals in mind.

He wanted to find a new small car for his wife, and he hoped to strike a deal before the new tariffs that President Trump is imposing on imported cars and trucks affect prices.

“The word on the street is prices are going to shoot up now,” said Mr. Duchnowski, 45, a union carpenter who voted for Mr. Trump, holding the hands of his two small children.

The tariffs — 25 percent on vehicles and parts produced outside the United States — will have a broad impact on the North American auto industry. They are supposed to go into effect on April 3 and are sure to raise the prices of new cars and trucks.

They will also force automakers to adjust their North American manufacturing operations and scramble to find ways to cut costs to offset the tariffs. And for now at least, they are spurring some consumers to buy vehicles before sticker prices jump.

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Analysts estimate that the tariffs will significantly increase the prices of new vehicles, adding a few thousand dollars for entry-level models to $10,000 or more for high-end cars and trucks. Higher prices for new vehicles are also likely to nudge used-car prices higher.

Every automaker will feel some kind of impact. General Motors builds a large number of highly profitable pickup trucks and sport utility vehicles in Canada and Mexico. Toyota and Honda make popular S.U.V.s in Canada. Volkswagen assembles the Jetta sedan, Tiguan S.U.V. and other popular models in Mexico.

“Once the tariffs go into effect and people start receiving quotes that represent these 25 percent increases, that’s when it’s going to start to sink in,” said Bill Pacilli, the sales manager at Lynnes Hyundai in Bloomfield, N.J.

Close to half the cars that Hyundai sells in the United States are imported from South Korea, he said. “They’re going to be hit with the tariffs in about a month or two,” Mr. Pacilli said. “Of course we’re concerned. Any effect in pricing is going to affect sales volume.”

While many dealers did not see a noticeable increase in buyers on Saturday, Jeremy Gleason, general manager at McGrath Subaru Evanston in Skokie, Ill., said his dealership had its biggest sales day since it opened in 2021.

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“It’s been nuts,” Mr. Gleason said. “The tariffs have come up a lot and pushed people to move forward quicker.” He added that his dealership typically sells about 15 cars on Saturdays but sold 32 on this one.

Alvaro Duarte, an Ecuadorean immigrant who lives in West New York, N.J., went to Hudson Toyota in Jersey City, N.J., on Saturday to trade in his gas-powered car for an electric model, fearing prices would rise if he waited.

“Tariffs affect everyone,” said Mr. Duarte, 37. In his free time, he said, he often uses his car to earn money on the side as an Amazon Flex delivery driver. “If the prices go up, I need to pay more for my car, and that’s more expensive for me and my family,” he said. “I made the change because with electric cars there is no gasoline and less maintenance.”

Meanwhile, a salesman at Audi Manhattan in New York, Abdul Azeez, said traffic was no brisker than usual, and suggested it was because the people who live in the neighborhood usually have the means to buy new cars whenever they choose.

“Overall, I don’t think dealers in Manhattan are going to be as affected compared to dealers in other states or less busy cities, because even in the good economy, bad economy, there’s always going to be somebody who walks in the door to buy a car,” said Mr. Azeez, 24.

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In Ann Arbor, Mich., on the strip of auto dealerships west of downtown on Jackson Avenue, customer traffic was pretty normal for a Saturday on the last weekend of the month — typically a busy time.

But a Tesla showroom drew a crowd: some 300 to 400 people gathered to protest the political activities of the company’s chief executive, Elon Musk.

Mr. Musk heads the cost-cutting initiative known as the Department of Government Efficiency, which has eliminated thousands of federal jobs and gutted several government agencies, including the Veterans Affairs Department and the Education Department.

Protesters carried signs calling for Mr. Musk’s firing and urged people to sell their Teslas.

“We’ve got to get some basic common sense back in this country,” said Harold Blake, 73, a retiree who drove 30 miles from Dearborn to participate in the protest.

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“It’s so extreme, what’s going on in Washington,” he said. “I’m not taking it lying down.”

Over the course of an hour, no customers crossed the picket line to enter the Tesla showroom.

Protests were taking place at Tesla locations around the world, as part of the so-called Tesla Takedown movement. More than two dozen such demonstrations were scheduled across the United States on Saturday. Others were planned for Europe, Australia and New Zealand.

“I’m terrified for my kids and grandkids for what this world is coming to,” Kathy Sinnes, 67, said while protesting outside a Tesla showroom in Miami and holding a poster that read, “Tesla greed we will not heed.”

It remains unclear how soon prices on new vehicles will rise. Most automakers have enough tariff-free cars and trucks on dealer lots to last 60 to 90 days.

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Juan Carlos Fagerlund decided not to wait. He was in a Toyota dealership in North Miami, Fla., to add window tinting to a Prius he had bought this month.

Although he had already been thinking about buying a new car, he said, the potential of higher prices prompted him to speed up his shopping, especially because he wanted a Prius. The car is made in Japan and will be subject to a heavy tariff.

The tariff increase “was not entirely the reason why we purchased in March,” Mr. Fagerlund said. “But it was definitely in our minds.”

Adria Pina, 60, a Dominican immigrant and a New Jersey Transit bus driver who lives in Bayonne, N.J., also decided to move quickly. Sitting in the Hudson Toyota dealership in Jersey City minutes after she bought a new car, she said she felt that she had just dodged a tariff pothole.

“My husband said we got lucky that we got a deal right before the tariffs,” Ms. Pina said. “If we didn’t get this done in time, it would have cost us about $10,000 more. That’s a lot of money.”

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Sal Sellers, 57, the general sales manager at Hudson Nissan next door, didn’t seem overly concerned about the looming tariffs, noting that he had been through the pandemic and other serious economic downturns. But that didn’t mean his customers weren’t worried.

“Last week, we had a couple customers walking in saying: ‘You know what, I’m not waiting. I’m going to change my car now before the tariffs hit,’” Mr. Sellers said. “I’d say about 30 percent of my customers said that.”

Outside Chicago, Enzo Costa oversees eight dealerships as director of sales for the family-owned Patrick Dealer Group.

In March, he said, he increased his orders for new cars to top off his inventory before prices rise, and his acquisitions team purchased 30 used vehicles — about three times the usual number.

So far, though, he hadn’t seen a spike in customer traffic. “On a normal Saturday, we set 80 to 100 appointments,” he said. “Today, we have 75.”

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He added that his sales team was urging customers considering new cars to come to the showroom. “Everything in inventory is pre-tariff,” he said. “You don’t have to worry about that now. That’s something that is way down the road.”

At Silver Line Auto Group in Queens, which sells used Jeeps, Cadillacs and Mercedeses, many customers are immigrants or other people who have driver’s licenses but not Social Security numbers. Back in December, Silver Line sold 35 cars, but business had crashed since then, said a salesman, Silver Bautista. The company sold just eight cars this month and recently laid off four employees.

Mr. Bautista said he believed that customers were staying away not because of rising prices but because they felt a need to save money.

“They don’t care about tariffs,” Mr. Bautista said. “People are worried about being deported.”

Robert Chiarito, Ryan Hooper, Verónica Zaragovia, Anusha Bayya and Nate Schweber contributed reporting.

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China’s Exports and Imports Set Records in April Amid High Energy Costs

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China’s Exports and Imports Set Records in April Amid High Energy Costs

China’s exports and imports each set monthly records in April, further cementing the country as the world’s leading trading nation as Beijing prepares to welcome President Trump for a summit next week with Xi Jinping, China’s leader.

China also ran a trade surplus — the excess of exports over imports — of $84.8 billion last month, according to data released on Saturday by the General Administration of Customs. However, that surplus did not set a record. The war in Iran and closure of the Strait of Hormuz pushed up the cost of imported oil and natural gas, causing China’s overall imports to increase slightly faster than exports.

The surplus in April keeps China on track for a third year of roughly trillion-dollar trade surpluses. China posted a $1.19 trillion trade surplus last year, easily breaking the world record of $992 billion that it had set the year before.

Mr. Trump is expected to press Mr. Xi to buy more American goods during their scheduled summit, part of his long-running effort to narrow China’s longtime trade surplus with the United States. But two recent court decisions overturning Mr. Trump’s tariffs on imports have eroded some of his leverage.

China’s exports to the United States jumped 11.3 percent last month compared to its shipments in April of last year, when President Trump’s “Liberation Day” tariffs produced a slump in imports from China.

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The country’s imports from the United States rose only 9 percent in April this year. As a result, its trade surplus with the United States widened by 13 percent.

China has long used state-run purchasing collectives in big categories like farm goods and commercial aircraft to manage its trade with the United States, ensuring it sells three to five times as much as it buys. Mr. Trump and his advisers have criticized that imbalance.

Semiconductor exports doubled last month compared with April of last year. Chinese manufacturers cashed in on the artificial intelligence data center boom even though they cannot yet produce some of the fastest kinds of chips.

Overall exports of electronics and machinery were up 20 percent in April from a year earlier.

China acts in many ways as a shock absorber in global oil markets. Beijing buys more oil for its vast reserves when the price is low, then cuts back purchases when prices are high, as they were last month.

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With oil prices spiking upward this spring, the tonnage of China’s oil imports dropped last month to its lowest level since July 2022, when Shanghai’s two-month Covid lockdown reduced demand. The lockdown hurt many of China’s oil-dependent industries.

Because prices rose faster last month than the tonnage declined, China’s overall bill for crude oil imports rose 13 percent from a year earlier. Rising oil prices helped drive China’s overall imports up 25.3 percent in April from a year ago, to a record $274.6 billion. Its exports surged 14.1 percent last month from a year earlier, to a record $359.4 billion.

China has been particularly successful this year in exporting electric cars as well as renewable energy products like wind turbines and solar panels. Exports of electric vehicles were up 52.8 percent last month from a year earlier.

China has been running large, and widening, trade surpluses over the past several years with most of the rest of the world. It has trade deficits with only a handful of countries, including those like Brazil and Australia which have very large commodity exports.

The European Union and many developing countries now find themselves with rapidly growing trade deficits with China. Practically all of them have run their own trade surpluses with the United States to fund their deficits with China, sometimes repackaging goods from China and shipping them on to the United States to do so.

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China’s huge trade surpluses are not necessarily a sign of economic strength. They partly reflect very weak spending by Chinese households on imports and domestic goods alike after five years of sliding housing prices wiped out much of the savings of the middle class. This has prompted many families to scrimp on purchases like new cars, leaving Chinese automakers with more cars to export.

“The Chinese economy still demonstrates resilience in trade and industrial supply chains,” said Zhu Tian, an economics professor at the China Europe International Business School in Shanghai, after the release of the trade data.

But weak domestic spending and a leveling off in the trade surplus, he said, “suggest that economic growth will continue to face significant challenges for the rest of the year.”

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Disney’s ABC challenges FCC, escalating fight over free speech

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Disney’s ABC challenges FCC, escalating fight over free speech

Walt Disney Co.’s ABC is forcefully resisting Federal Communications Commission efforts to soften the network’s programming, accusing the federal agency of an overreach that violates 1st Amendment freedoms.

Last week, the FCC took the unusual step of calling in the licenses of eight Disney-owned television stations for early review. The move — widely interpreted as an effort to chill the network’s speech — came a day after President Trump demanded that ABC fire late-night host Jimmy Kimmel over a joke about First Lady Melania Trump.

The FCC separately has taken aim at ABC’s daytime discussion show, “The View,” which delves deeply into politics.

The FCC has questioned whether the show, which prominently features Trump critics Whoopi Goldberg and Joy Behar, could continue toclaim an exemption to rules that require broadcasters to provide equal time for opponents of political candidates.

In its response this week to the FCC, Disney’s Houston television station raised the stakes in “The View” dispute, calling the commission’s actions “unprecedented” and “beyond the Commission’s authority.” The ABC station’s petition for a declaratory ruling said “The View,” has long qualified as a “bona fide” news interview program with freedom to conduct interviews of legally qualified political candidates.

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“The Commission’s actions threaten to upend decades of settled law and practice and chill critical protected speech, both with respect to The View and more broadly,” the Houston station KTRK-TV said in the filing.

The network’s firm stance sets up a clash with the Trump administration, including the president’s hand-picked FCC Chairman Brendan Carr, who has made no secret of his disdain for Kimmel and other ABC programming. Earlier this year, Carr announced that decades-old exemptions from the so-called “equal time rule,” for some programs, including “The View,” were no longer valid.

In a statement, the FCC said it would “review Disney’s assertion that ‘The View’ is a ‘bona fide news program’ and thus exempt from the political equal time rules,” according to a spokesperson.

“Decades ago, Congress passed a law that generally prohibits broadcast television programs from putting a thumb on the scale in favor of one political candidate over another,” the spokesperson said. “The equal time law encourages more speech and empowers voters to decide the outcome of elections.”

ABC’s strenuous arguments mark a turning point for the Disney-owned outlet.

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In December 2024, a month after Trump was elected to a second term, the network quickly settled a lawsuit over statements made by news anchor George Stephanopoulos that Trump found offensive. ABC agreed to pay Trump $15 million to end his legal fight — sparking an outcry among free speech advocates, who accused the network of caving on a case it may have won.

But, over the past year, the network has weathered several storms, including a threat by Carr in September to punish ABC if it didn’t muzzle Kimmel for comments he made in the wake of conservative activist Charlie Kirk’s death. ABC briefly benched Kimmel to allow tensions to cool but, during the week his show was off the air, protesters loudly bashed Disney, demanding the legendary company stand up for free speech.

Thousands of consumers canceled their Disney+ and Hulu subscriptions in protest.

Protesters swarmed Hollywood Boulevard, protesting ABC’s move to bench Jimmy Kimmel in September over comments he made about the shooting of right-wing influencer Charlie Kirk.

(Genaro Molina/Los Angeles Times)

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Some conservatives, including Sen. Ted Cruz (R-Texas) and commentator Ben Shapiro also criticized Carr’s handling of 1st Amendment issues.

“The days of the FCC as a paper tiger are numbered,” the FCC’s lone Democrat, Anna M. Gomez, said Friday in a statement. “What the public will remember is who complied in advance and who fought back. I’m glad Disney is choosing courage over capitulation.”

The high-profile dispute presents an early challenge for Disney Chief Executive Josh D’Amaro, who succeeded longtime chief Bob Iger in March.

ABC has asked for the full commission — a three member panel of Carr, Gomez and Commissioner Olivia Trusty, a Republican — to rule on the equal time exemption for “The View.” ABC said that, in 2002, it received a ruling from the FCC that granted the exemption, and the show’s format has not changed. “The View” is produced by ABC News.

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“Some may dislike certain — or even most — of the viewpoints expressed on The View or similar shows,” the station said in its filing. “Such dislike, however, cannot justify using regulatory processes to restrict those views.”

ABC described a logistical nightmare of providing equal time for political opponents by pointing to California’s crowded primary field of gubernatorial candidates. “Affording equal time would mean accommodating over 60 legally qualified candidates, regardless of their perceived newsworthiness,” the station wrote.

The network said it makes show bookings based on newsworthiness, not partisan politics. It also noted it has invited politicians from both sides of the aisle to appear on “The View,” but some, including Vice President J.D. Vance, Health Secretary Robert F. Kennedy, Jr., Secretary of State Marco Rubio and entrepreneur Elon Musk, have declined the invitation.

The station also noted that, while the FCC has questioned the exemption for “The View,” the agency hasn’t shown interest in regulating programs on other networks, “including the many voices — conservative and liberal — on broadcast radio.” The FCC also oversees radio station licenses.

“The danger is that the government will simply decide which perspectives to regulate and which to leave undisturbed,” ABC said.

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On April 28, Carr called for a review of Disney’s broadcast licenses, including for the Houston station and KABC-TV in Los Angeles, two years before any of them were set to expire. The FCC said the review was part of the agency’s year-old inquiry into Disney’s diversity, equity and inclusion policies and whether they violated federal anti-discrimination rules.

In its Thursday petition, ABC said it had fully complied with the FCC’s request for documents related to its diversity and hiring.

The company has produced more than 11,000 pages of documents to comply with the request, Disney said.

The same week that Disney sent documents to the FCC, Kimmel made a joke on his show about Melania Trump, comparing her glow to that of “an expectant widow.” On April 25, a gunman tried to breach security at the Washington Hilton, where the first couple were on stage for the White House Correspondents’ Assn. Dinner. Shots were fired outside the ballroom.

Three days later, the FCC announced it was requiring early license renewal applications for the Disney-owned stations.

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U.S. Targets Iran’s Missile and Drone Program With Sanctions

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U.S. Targets Iran’s Missile and Drone Program With Sanctions

The United States on Friday announced a flurry of new sanctions intended to increase pressure on Iran’s economy, targeting people and companies in China and Hong Kong that have been helping the Iranian military gain access to supplies and war equipment.

The sanctions came ahead of a major summit between President Trump and China’s leader, Xi Jinping, in Beijing next week. China’s support for Iran has become a flashpoint with the Trump administration, which has been trying to compel independent Chinese refineries to stop purchasing Iranian oil.

China is Iran’s biggest buyer of oil, and the Trump administration has said that it is sponsoring terrorism by propping up the Iranian economy.

The new sanctions are aimed at Iran’s military industrial supply chain, and are intended to make it harder for Iran to secure access to the material it needs to build drones and missiles. In addition to China, the sanctions also target people and companies based in Belarus and the United Arab Emirates.

“Under President Trump’s decisive leadership, we will continue to act to keep America safe and target foreign individuals and companies providing Iran’s military with weapons for use against U.S. forces,” Treasury Secretary Scott Bessent said in a statement.

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The Trump administration has been looking for ways to squeeze Iran’s economy and pressure the Iranian government to reopen the Strait of Hormuz, a conduit for the flow of global oil. Oil tankers have had sporadic access to the critical waterway since the war started earlier this year, and the United States and Iran have been fighting over who should control it.

U.S. warships that have been trying to transit the strait have been attacked by Iranian forces. The United States on Friday fired on and disabled two Iranian-flagged oil tankers as they tried to reach an Iranian port.

The Treasury Department has also imposed sanctions on the Chinese “teapot” refineries this month. The independent refineries are major purchasers of Iranian oil. But China invoked a domestic policy ordering its companies to disregard the sanctions.

Mr. Bessent said earlier this week that he expected Mr. Trump to urge Mr. Xi to use the country’s leverage over Iran to pressure it to allow oil cargo to travel.

“Let’s see if China — let’s see them step up with some diplomacy and get the Iranians to open the strait,” Mr. Bessent told Fox News on Monday.

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