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Apple was once considered so important to both America and China that some even hoped it would help avert great-power conflict. Now the iPhone-maker finds itself more exposed than any big American company to President Donald Trump’s trade war. Not only will higher tariffs push up its costs in America, its biggest market. Retaliation could clobber its sales in China, its second-biggest. Never has Tim Cook, the firm’s boss, faced a more urgent need to justify his reputation for geopolitical fence-straddling. More

Toy prices could spike exponentially after President Donald Trump levied massive tariffs against China and Vietnam.
The two nations are biggest manufacturers of toys imported into the United States.
These price hikes are expected to coincide with this year’s back-to-school season.

A customer pushes a shopping cart containing stuffed toys at a Target Corp. store in the Queens borough of New York, U.S, on Thursday, Nov. 28, 2019.
Bess Adler | Bloomberg | Getty Images

The toy aisle is about to get more expensive.
President Donald Trump expanded his trade war this week, placing a 10% baseline tariff on almost every country and much steeper levies on dozens of others. Among those hit with higher tariffs were China and Vietnam — two nations that are vital to the domestic toy industry.

For decades, U.S. toy companies have worked with Chinese manufacturers to bring the hottest action figures, dolls and games to retail shelves. Vietnam became a solid secondary market for companies looking to diversify their factory locations amid growing trade tensions between Washington and Beijing.
Trump slapped China with an additional 34% duty Wednesday, bringing the total tax on goods from the nation to 54%, and hit Vietnam with a 46% tariff. The levy is far higher than what toy companies expected and could lead to massive price hikes on toys, industry experts said.
“Everyone is really in scramble mode,” Greg Ahearn, president and CEO of The Toy Association, told CNBC. “This is going to have massive negative repercussions for the consumer and for our industry.”
Adding to the tensions, China is set to impose a retaliatory 34% levy on all U.S. products, its commerce ministry announced Friday.
“I think the Vietnam situation will be a little bit easier to negotiate, as far as I think we will see the Vietnamese country and government come to the table quicker than China trying to resolve any trade disputes,” said Curtis McGill, co-founder of Hey Buddy Hey Pal, which makes the Eggmazing Egg Decorator, a crafting tool that spins eggs so kids can use markers to color them. “They’re just not in a place where they can stand losing much of the business.”

Around 77% of toys imported into the United States come from China, according to data from The Toy Association. Vietnam is third, just behind Mexico. Trump previously placed a 25% tariff on goods from Mexico that aren’t compliant with the United States-Mexico-Canada Agreement.
Hasbro and Mattel, leaders in the toy space, both incorporated a 20% tariff impact from China in their guidance projections for 2025 and had strategies in place to shift production to other countries, like Vietnam, Indonesia and India, all three of which were also hit with tariffs — 46%, 32% and 26%, respectively.
“As a result, relocating production may not be financially viable,” wrote Eric Handler, analyst at Roth, in a research note to investors published Thursday. “The consumer should soon see price increases to partially offset the tariff impact.”
Hasbro and Mattel report first-quarter earnings this month, and Handler said investors will likely see guidance cuts from both companies.
Toy companies have already been slammed on Wall Street in the wake of the tariff announcement. Mattel shares fell more than 16.5% in Thursday trading, Hasbro lost more than 12% and Funko, which also has manufacturing in China and Vietnam, saw its stock plummet 18%. 
While Handler expects companies to try and lower costs through contract renegotiations with manufacturers and, perhaps, even altering packaging to improve margins, he said there is little doubt that consumers will bear the brunt of Trump’s duties.
“You could have anywhere from 35% to potentially even a point-for-point price increase on products depending upon what margin those products run at,” The Toy Association’s Ahearn said. “It may actually just be a 50% price increase, given it’s a 54% tariff.”
Most toy margins are in the high single digits, he noted. So, there is very little wiggle room for companies to absorb these fees.
“There’s no place for it to go, but to the consumer,” Ahearn said, noting that The Toy Association expects price hikes to coincide with this year’s back-to-school season.
“The greatest budgetary impact on are the folks, unfortunately, who can afford it the least,” he said. More

The Trump administration’s new tariffs will likely mean higher prices for household staples such as coffee, toilet paper and bananas.
The U.S. climate limits the domestic production of some key ingredients, according to the Consumer Brands Association, an industry trade group that represents Procter & Gamble and Coca-Cola.
Commerce Secretary Howard Lutnick brushed off the idea that countries could win exemptions for specific goods on CNBC’s “Squawk Box.”

A customer shops for produce at an H-E-B grocery store in Austin, Texas, on Feb. 12, 2025.
Brandon Bell | Getty Images

Shoppers will likely pay more for coffee, bananas, vanilla and toilet paper over the coming weeks as the Trump administration’s new tariffs go into effect.
The U.S. plans to hike tariff rates on goods imported from more than 180 countries and territories in the hopes of bringing jobs back stateside. However, some “critical” ingredients and materials found in food, drinks and goods used daily by U.S. consumers are not available domestically, according to the Consumer Brands Association, an industry trade group that represents Coca-Cola, Procter & Gamble, Target and other consumer giants.

“However well intended, the success of the President’s America First Trade Policy, must recognize the U.S. companies that are already doing it the right way but depend on imports for specific ingredients and inputs that cannot be sourced domestically,” Tom Madrecki, vice president of supply chain resiliency for the CBA, said in a statement. “Reciprocal tariffs that do not reflect ingredient and input availability concerns will inevitably raise costs, limit consumer access to affordable products and unintentionally harm iconic American manufacturers.”
On CNBC’s “Squawk Box” on Thursday morning, Commerce Secretary Howard Lutnick brushed off the idea that countries could win exemptions for specific goods. But the CBA is seeking exemptions for key ingredients and materials slapped with tariffs to keep prices down for its members and their customers.
For one, the U.S. climate limits the production of some staples of the U.S. diet, such as coffee, cocoa and tropical fruits, according to the CBA. The U.S. was the top global importer of bananas in 2023, based on Observatory of Economic Complexity data. Nearly 40% of those bananas came from Guatemala, which will face a 10% tariff on goods exported to the U.S.

Trader Joe’s has long bragged about not raising the price of its bananas, as seen in this photo from 2014. 
Rj Sangosti | Denver Post | Getty Images

Spices will also become pricier for home cooks and bakers because of climate limitations, the CBA said. For example, Madagascar accounts for more than three-quarters of U.S. imports of vanilla, which is already the second-most expensive spice in the world. Exports from Madagascar will be subject to tariffs of 47%.
Shares of spice purveyor McCormick were down less than 1% in afternoon trading on Thursday. The company plans to offset tariffs through “some very targeted price adjustments” and a broader cost-savings program, McCormick executives said in late March.

In other cases, decadeslong shifts in the U.S. agricultural system mean domestic supply will not be able to meet demand easily.
For example, more than 90% of oats milled for food in the U.S. come from Canada to be turned into cereal, the CBA said. But U.S. oat acreage peaked more than a century ago and has been declining in the decades since then, according to the U.S. Department of Agriculture. The domestic food system can no longer grow, store or transport U.S. oats at the scale necessary to meet demand, the CBA said.
Shoppers will likely also find themselves paying more for inedible household staples. Toilet paper, diapers, lotions and shampoo could become more expensive as manufacturers pass on the increased costs for wood pulp, bamboo fibers, shea butter and palm oil, according to the CBA. For example, the U.S. imports most of its palm oil supply from Indonesia, which now faces a 32% duty.
Markets plunged on Thursday in response to the tariff announcement. However, stocks in the consumer staples sector, which includes many of the CBA’s members, rose in afternoon trading as investors ditched riskier bets for the relative safety of household necessities.
Shares of Procter & Gamble climbed more than 1%, while Coke’s stock was up 2%. General Mills’ shares ticked up 3%.

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Stellantis said it is pausing production at two assembly plants in Canada and Mexico as the company attempts to navigate President Donald Trump’s new round of 25% automotive tariffs.
About 900 U.S.-represented employees at supporting plants will be temporarily laid off, in addition to about 4,500 hourly workers at the Canadian plant, Stellantis said.
Ford Motor and General Motors also responded to the tariffs, but not by idling production.

The Stellantis Windsor Assembly Plant is shown on April 1, 2025 in Windsor, Canada. 
Bill Pugliano | Getty Images

DETROIT — Stellantis is pausing production at two assembly plants in Canada and Mexico as the company attempts to navigate President Donald Trump’s new round of 25% automotive tariffs, the company confirmed Thursday.
The actions are the swiftest and most drastic by an automaker regarding the new tariffs, which took effect Thursday and are imposed on all vehicles imported to the U.S., including from Canada and Mexico.

Stellantis’ downtime starts Monday and is set for two weeks at the automaker’s Windsor Assembly Plant in Ontario, Canada, and the entire month of April at its Toluca Assembly Plant in Mexico.
As a result of the pause in production, about 900 workers in the U.S. at supporting plants will be temporarily laid off, in addition to about 4,500 hourly workers at the Canadian plant, according to a company spokeswoman. Workers at the plant in Mexico will still report to the facility but not produce vehicles due to their contract terms, the spokeswoman said

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In an email to employees Thursday, Stellantis North American chief Antonio Filosa said the plant downtime is tied to the tariffs, as the company reviews its options.
“We are continuing to assess the medium- and long-term effects of these tariffs on our operations, but also have decided to take some immediate actions, including temporarily pausing production at some of our Canadian and Mexican assembly plants,” Filosa said. “Those actions will impact some employees at several of our U.S. powertrain and stamping facilities that support those operations.”
Shares of Stellantis closed Thursday at $10.21, down 9.4%. It’s the stock’s worst day since September.

The Canadian plant produces the Chrysler Pacifica minivan and the recently released Dodge Charger Daytona EV. The Mexico plant produces the Jeep Compass SUV and Jeep Wagoneer S EV.
Unifor National President Lana Payne, whose union represents the Canadian workers, on Thursday condemned the tariffs and voiced concerns for her members.
“Unifor warned that U.S. tariffs would hurt auto workers almost immediately and in this case the layoffs were announced before the auto tariff even came into effect,” she said in a release. “Trump is about to learn how interconnected the North American production system is the hard way, with auto workers paying the price for that lesson.” 
Filosa said the “current environment creates uncertainty,” but assured employees that the company, which continues to search for a new CEO, is “very engaged with all of our key stakeholders, including top government leaders, unions, suppliers and dealers in the U.S., Canada, and Mexico.”
Halting production also will help Stellantis lower vehicle inventory levels that have built up amid lackluster sales for many of its brands.
Stellantis’ Detroit rivals Ford Motor and General Motors also responded to the tariffs, but not by idling production.

GM ups truck production

GM plans to temporarily increase pickup truck production at a plant in Indiana.
The increase in workers is in addition to those who the company was already hiring for the plant as supplemental workers to support summer breaks and time off for their regular employees, according to a person familiar with the plans.
GM, in an emailed statement, confirmed the plans Thursday without mentioning tariffs.
The Detroit automaker produces its crucial, highly profitable pickup trucks such as the Chevrolet Silverado and GMC Sierra at various plants in the U.S., Canada and Mexico.
GM has not cut production at any plants as a result of the tariffs like Stellantis is doing, said the person, who was not authorized to speak to media.

Ford employee discount

Hours after Trump’s tariffs went into effect, Ford announced it will offer its employee discount to all customers.
Ford said the sales program — running from April 3 through June 2 — includes “significant savings” but did not release exact details on the discounts.
The program, which it’s calling “From America, For America,” excludes some larger vehicles like the Ford Raptor, 2025 Ford Expedition, Ford Super Duty trucks and Lincoln Navigator SUVs.
“We understand that these are uncertain times for many Americans,” the company said in a statement. “We have the retail inventory to do this and a lot of choice for customers that need a vehicle.”
U.S. auto sales in the first quarter came in higher than expected as consumers flocked to buy cars ahead of auto tariffs taking effect, which many expect will lead to higher vehicle prices.
— CNBC’s Michele Luhn contributed to this article. More

Southwest Airlines last month said it will start charging customers to check bags in May.
Fitch warned that the policy change and other moves could weaken Southwest’s competitive position.
The ratings agency put the carrier on “negative” outlook, saying the company could become less financially conservative.

A Southwest Airlines jet approaches Midway Airport on Dec. 15, 2023, in Chicago. (John J. Kim/Chicago Tribune/Tribune News Service via Getty Images)
John J. Kim | Chicago Tribune | Getty Images

Southwest Airlines’ new policies such as charging for checked bags for the first time could backfire, Fitch Ratings said Thursday.
Southwest is reversing its decades-old two “bags fly free” policy for checked luggage in May, though there are exceptions for travelers with a Southwest credit card, elite frequent flyer status or who buy the highest classes of tickets.

It is also launching assigned seating and a no-frills basic economy fare and said flight credits will expire.

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Fitch issued a negative ratings outlook for the company, long known for its strong balance sheet, because “Southwest may shift to a less conservative capital allocation and financial policy, while ongoing strategic changes have the potential to impact its competitive position relative to network carriers.
“Items aimed at improving profitability such as the introduction of bag fees and expiring flight credits risk eroding Southwest’s competitive strengths relative to peers,” Fitch said.
Social media posts from Southwest, even if they’ve been unrelated to policy changes, have drawn angry comments about the shifts, but market share loss, if any “is uncertain,” the firm noted.
Southwest declined to comment on Fitch’s new outlook. The airline has been under more intense pressure to improve margins since activist hedge fund Elliott Investment Management took a stake in the carrier and later won five board seats in a settlement last year.

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The average rate on the popular 30-year fixed loan plunged 12 basis points to 6.63% on Thursday.
For the four weeks ending March 30, the typical U.S. homebuyer’s monthly payment hit a record high for the second week in a row, reaching $2,802.
In March, there was a 10% annual jump in new listings, with active listings up roughly 28%.

Mortgage rates fell sharply Thursday following the Trump administration’s tariff announcement.
The average rate on the popular 30-year fixed loan plunged 12 basis points to 6.63%, according to Mortgage News Daily. That put it at the lowest level since October.

The massive sell-off in the stock market early Thursday sent investors fleeing to the bond market. That caused bond yields to drop. Mortgage rates loosely follow the yield on the 10-year U.S. Treasury, and they had been moving in a very narrow range since late February.
“While plenty of uncertainty remains over the finer points of Wednesday afternoon’s tariff announcement, markets have heard enough to brace for impact on global trade,” wrote Matthew Graham, chief operating officer at Mortgage News Daily.
The drop in rates comes at a good time for the housing market, as the historically busy spring season kicks into gear. But there are several other factors working against buyers and hitting home affordability hard.
For the four weeks ending March 30, the typical U.S. homebuyer’s monthly payment hit a record high for the second week in a row, reaching $2,802, according to Redfin, a real estate brokerage.
“Sale prices are up 3.4% year over year, and the weekly average mortgage rate is 6.65%, near its lowest level since December but more than double pandemic-era lows,” according to the report.

Even with a slight drop in mortgage rates Thursday, roughly 70% of households, or 94 million, cannot afford a $400,000 home; the estimated median price of a new home is around $460,000 in 2025, according to the National Association of Home Builders. This calculation was based on income thresholds and underwriting standards.
The minimum income required to purchase a $200,000 home at the mortgage rate of 6.5% is $61,487, according to the report. In 2025, about 52.87 million households in the U.S. are estimated to have incomes no more than that threshold and, therefore, can only afford to buy homes priced up to $200,000.
While there is a growing supply of homes coming onto the market, that supply is not at the price point where it is most in demand, meaning, it’s not on the lower end. It is also, in general, far lower than it has been historically, due to chronic underbuilding since the Great Recession.
“Supply is picking up; a lot of people I’ve spoken to over the last year or two are calling, saying they’re ready to list their house,” said Matt Ferris, a Redfin agent in northern Virginia. “Some believe we’re at the top of the market, and they want to get top dollar for their house. Here in the D.C. area, some people are selling because they’re worried about losing their government job, or because they want to buy closer to the city due to in-office policies.”
As for the spring season so far, March saw a 10% annual jump in new listings, with active listings up roughly 28% year over year, according to Realtor.com. But it also found homes sitting on the market longer and the share of listings with price reductions rising. Pending sales, which are signed contracts on existing homes, fell 5.2% from last March in the nation’s largest metropolitan areas. 
Some of the steepest declines were in Jacksonville, Florida, and Miami, Florida — down 15.1% and down 13.7%, respectively — where the markets have been softening due in part to reverse pandemic migration. Virginia Beach, Virginia, saw a 14.2% decline.
“The high cost of buying coupled with growing economic concerns suggest a sluggish response from buyers in early spring. We’re seeing a market that’s rebalancing, offering more choices for shoppers,” Danielle Hale, chief economist for Realtor.com, wrote in a release. “Recent improvements in mortgage rates bode well for the later spring and early-summer housing season, as long as economic concerns settle and don’t knock buyers off course.” More

President Donald Trump’s 25% tariffs on imported vehicles to the U.S. have taken effect, but the impacts of the new levies could take years to unfold.
In the near term, auto industry investors should expect continued volatility in automaker and supplier stocks, according to Wall Street analysts.
CNBC breaks down what investors should know about how the additional levies will impact individual vehicles and automakers.

Vehicles seen on the lot of a Ford auto dealership in Montebello, California on April 1, 2025.
Frederic J. Brown | Afp | Getty Images

DETROIT — President Donald Trump’s 25% tariffs on imported vehicles to the U.S. have taken effect, but the impacts of the new levies on investors and the global automotive industry will play out over the months, if not years, to come.
The 25% tariffs are on any vehicle not assembled in the U.S., which S&P Global Mobility reports accounted for 46% of the roughly 16 million vehicles sold domestically last year. The White House has said it also plans to place tariffs on some auto parts such as engines and transmissions, but those are set to take effect no later than May 3.

Wall Street analysts and investors have been bearish on the tariffs, which some believe could decimate company earnings and drive the automotive industry into a recession.
“A 25% on automotive imports lasting beyond four to six weeks would likely have a chilling effect on the entire sector as [automakers] need to grapple with significant impact to the bottom line,” Bernstein analyst Daniel Roeska said in a recent note to investors.
TD Cowen’s Itay Michaeli described the tariffs to investors as “close to the worst case outcome vs. recent expectations,” while Barclays’ Dan Levy said “there are no ‘winners’ in the absolute – only relative winners.”
Trump has admitted there may be some “pain” initially with the tariffs, but the president said he believes the actions will bolster American jobs in the long term and result in more than $100 billion of new annual revenue to the U.S.

Automakers were lobbying for vehicles and parts that are compliant with Trump’s United States-Mexico-Canada trade agreement to be tariff-free, but so far there have been no exemptions for vehicles.

There might end up being caveats for auto parts that are still yet to be finalized, but auto stocks will likely remain volatile, Wall Street analysts warned.
As the impacts of the tariffs continue to unfold, investors should be aware of which companies are expected to be most at risk, what vehicles will be impacted and just how much the levies are expected to affect earnings.

U.S.-built does not mean U.S.-made

Simply put, no vehicle is completely sourced and produced domestically.
Even if vehicles are produced in the U.S. — meaning the final assembly takes place in the country — the tens of thousands of parts for new cars and trucks come from a global supply chain.
“We stress that the concept of a U.S. car maker with parts all from the U.S. is a fictional tale that does not exist and would take years to make this concept a reality,” Wedbush analyst Dan Ives said in an investor note Wednesday.
For example, Ford Motor’s F-150 is exclusively assembled in the U.S. but has roughly 2,700 main billable parts, which exclude many small pieces, according to Caresoft, an engineering benchmarking and consulting firm. Those parts come from at least 24 different countries, Caresoft said.

Ford-150 pickup trucks are displayed for sale at a dealership on March 24, 2025 in Austin, Texas. 
Brandon Bell | Getty Images

Ultimately, the rollout of the tariffs on auto parts will be key, and could potentially bring some relief for automakers, depending on their supply chain network.
Parts that are currently compliant with the USMCA trade deal will be tariff-free, but only until the secretary of commerce and Customs and Border Protection establish processes to impose levies on non-U.S. content.
Automakers under USMCA also are expected to have an opportunity to have U.S. content equate to a reduction in their tariff calculation, according to the White House.

Automakers most impacted

S&P Global Mobility reports Volvo, Mazda, Volkswagen and Hyundai Motor (including Genesis and Kia brands) are the most at risk from a vehicle standpoint, as at least 60% of their respective U.S. sales were imported from outside the U.S. in 2024.
Ford, General Motors, Toyota Motor, Honda Motor and Chrysler parent Stellantis produced the most vehicles in the U.S., according to S&P Global Mobility. Those five automakers accounted for 67% of U.S. passenger light-vehicle production in 2024.
But Bernstein estimates 57% of the value content in U.S.-assembled vehicles is imported, which means companies such as Ford — the No. 1 U.S. producer of cars and trucks — are still set to be significantly impacted by the tariffs.
Among the Detroit automakers, Bernstein reports GM faces the highest exposure to tariffs, driven by its more than 80% North America revenue share, 48% vehicle import rate, and less than 40% U.S. parts content in domestic builds.

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Auto stocks

Bernstein estimated GM’s earnings before interest and taxes could drop 79% as a result of the tariffs, an 81% decline in earnings per share and a $4.1 billion hit to free cash flow.
That compares with Bernstein’s estimates for Ford of a 16.5% hit to EBIT, 23% decline in EPS and 36% drop to free cash flow.
Stellantis, Bernstein estimates, is least affected, with only 40% of global revenue from the U.S. and 56% local parts content, resulting in a roughly $1 billion EBIT impact, 8.75% lower net income and a roughly $540 million hit to free cash flow.
Excluding potential tariffs on parts, U.S. electric vehicle leader Tesla as well as EV startups Rivian Automotive and Lucid Group are far better positioned. All of their vehicles sold in the U.S. have final assembly in the country.
“Tesla is the clear structural winner: localized, strong market share, better insulated from trade risk. For everyone else, this is a margin reset and real drag on near-term earnings power,” Bernstein’s Roeska said.

U.S. auto sales

U.S. auto sales in the first quarter came in well above industry expectations, as consumers flocked to buy new vehicles ahead of the tariffs taking effect, which many expect to result in higher vehicle prices.
“Along with increasing costs for importing vehicles, costs will increase for auto manufacturing in the US, and consumer costs for vehicles will increase,” S&P Global Mobility said in a tariff report last week.
S&P expects U.S. light-vehicle sales could migrate to between 14.5 million and 15 million units annually in the coming years, if the tariffs remain in effect. That compares with roughly 16 million vehicles sold in 2024.

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Entry-level, less expensive vehicles are most at risk of being cut or seeing price increases, according to Wall Street and industry analysts. That’s because automakers often have tried to produce such vehicles, which historically have small profit margins, in lower-cost countries to the U.S.
For example, GM imported more than 400,000 entry-level crossovers for its Buick and Chevrolet brands last year from South Korea, tariff-free. The company has touted the vehicles as being the pinnacle for the automaker’s profitable growth in lower-margin, entry-level vehicles.
Other entry-level or more affordable vehicles that are set to be tariffed include the Toyota RAV4 and Honda CR-V from Canada as well as the Ford Maverick, Ford Bronco Sport and Chevrolet Equinox from Mexico.
Bank of America estimates new vehicle prices — which currently run an average of about $48,000 — could increase as much as $10,000 if automakers pass the tariffs on impacted vehicles in full on to consumers.
Automakers have largely been silent on how much they intend to increase vehicle prices due to the new auto tariffs, as well as additional levies on parts, aluminum and steel — if they raise prices at all.
“We continue to evaluate all of the scenarios,” Hyundai Motor North America CEO Randy Parker said Tuesday about potential price increases. “But what I would say to our customers is that, just like all things in life, tomorrow is never guaranteed. And if you’re interested in buying a car, right now is a great time to buy a car, because as of today, we haven’t [risen] prices.” More

“Track and field has failed to reach its potential for years,” says Michael Johnson, an American sprinter with four Olympic gold medals. A ranking of the 100 best-paid athletes in the world by Sportico, a trade publication, does not feature a single athletics star. Indeed, the journal estimates that the highest-profile track athlete, America’s Noah Lyles, may not have earned enough last year to make the top 1,000. More