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Chinese leader Xi Jinping on Friday warned of “severe challenges” to global trade, vowing to open the country’s door “wider and wider” to foreign firms as Beijing faces down a mounting trade war with the United States.Meeting executives including hedge fund boss Ray Dalio and Samsung Electronics chief Lee Jae-yong in Beijing’s ornate Great Hall of the People, Xi warned that “unilateralism and protectionism” were on the rise.”Multilateralism is the inevitable choice for addressing the difficulties and challenges facing the world, and economic globalisation is an unstoppable historical trend,” Xi said.His comments were a veiled criticism of Trump’s recently imposed tariffs, which are dampening the prospects this year for Chinese exports after they soared to record highs last year.Beijing has sought to woo foreign businesses as those global trade headwinds threaten its already-shaky economic growth.It has also positioned itself as a staunch defender of the multilateral trading system as the mercurial resident of the White House rocks the international order.During Friday’s meeting, Xi called for upholding World Trade Organisation rules, while promising China would continue to “advance trade and investment liberalisation”.”All parties should work together to uphold the global economic order,” he said.He vowed that “foreign enterprises in China can develop their advantages and capabilities and gain an advantage in global competition”.Exports have historically represented a key driver of growth in the manufacturing powerhouse, though increasing trade and geopolitical tensions are threatening that.Foreign enterprises in China have long complained of an unfair business environment, with IP theft, a lack of regulatory transparency and an uneven playing field with local firms among the laundry list of issues.A sweeping counterespionage law imposed in 2023 has also done little to improve sentiment.This week, US due diligence firm Mintz Group said that China had released five local employees detained more than two years ago during a crackdown on foreign consultancies with multinational links.Beijing later said the company was under investigation for suspected “illegal operations”, but did not provide details.Other US firms targeted in the 2023 crackdown included Bain & Company and Capvision.

On the fifth floor of Southeast Asia’s biggest textile market, Indonesian trader Toni Sar waves a white envelope to signal surrender as he points to shuttered units forced to close because of falling business.”There are many who are not strong anymore. They can’t do it anymore,” said the 49-year-old clothes trader, who sells to 27 provinces around the archipelago by phone and mail order.Temporary closure notices over failed rent payments were plastered on the metal shutters at Tanah Abang market in capital Jakarta, as Toni’s workers packed away Islamic clothing for customers around Indonesia.The Islamic month of Ramadan is usually a bounty for commerce, especially for businesses that hawk robes, headdresses and accessories.But traders at the huge market say the fasting month, which runs until the end of the month, is providing little respite as a post-pandemic lull and online shopping platforms cut into their coffers.Toni said his revenue was down 50 percent compared to last year.But “we hope for the best,” he added, saying he wished for an uptick in the run-up to the Eid Al-Fitr celebration at the end of Ramadan.Clothes seller Ardino Putra, 33, said his sales had fallen a fifth to two billion rupiah from 2.5 billion ($153,000) the year before.”Maybe because of economic factors, and maybe also due to the influence of online shops,” he said.”It should be reduced… rent and service charges. Our payments remain the same… but our sales are low.”Recently inaugurated President Prabowo Subianto has pledged to take Indonesia to developed economy status and eight percent growth, up from five.But the economic outlook remains uncertain with Indonesia’s central bank forced in January to cut interest rates in a bid to boost economic growth and a weakening rupiah.”The first few months of Prabowo’s administration are a cause for concern,” said Gareth Leather, senior Asia economist at Capital Economics.- ‘Hold on’ -In an ironic twist, offline markets are helping fuel online stores, and even attracting sellers from abroad.Setting up a smartphone on a stand to begin a TikTok live, Yaya Azmi, a 22-year-old student, says she flew to Jakarta from Malaysia with her sister to source cheaper Islamic garments.”It’s very good. Ramadan is the best time,” she said.Her income has risen five-fold during the holy month due to orders placed on TikTok and messaging app Telegram, she said.For older buyers, traditional markets like Tanah Abang remain the go-to.”Everything is complete here, there are many choices, and the prices are cheap,” said housewife Hani Nayowan, 60.”Before the pandemic, it was more crowded. (The government) should create more jobs for the lower-class people so they have an income.”Meanwhile the e-commerce market is booming in Indonesia, expected to grow from nearly $53 billion in 2023 to $87 billion in 2028, according to the US International Trade Administration.Sellers like Ria Angrenni, 37, say livestreaming and online sales industries are harming traders in the market, with many forced to adapt to keep the lights on.She called on the government to tax online platforms more, with Tanah Abang vendors forced to pay a service charge of one million rupiah ($62) a month on top of rent.Yet online business now accounted for 35 percent of her trade, with the rest offline sales.”If I can follow the trend, the sales will be good,” she said.Business groups say shifting shopping behaviours and a failure by some traders to move with the times were piling on the pain.”It should not be surprising if traders that solely rely on offline shopping suffer from a lack of sales performance,” said Shinta Kamdani, chair of the Indonesian Employers Association.”Indonesia’s biggest consumer base today is millennials & Gen-Z. They are more drawn to shop at modern market settings.”But trader Toni, surrounded by bolted shop units, refuses to give up.”I have to hold on. Where else can I go?” he said.”(Keep the) spirit!”

Japanese Prime Minister Shigeru Ishiba said Friday that Donald Trump’s views on tariffs were “difficult to understand” after the US president announced 25 percent levies on imported cars and parts.Just weeks after Ishiba and Trump held apparently friendly talks, the duties came as a major blow to Japan, one of Washington’s closest economic and strategic allies. Japanese auto shares sank for the second day on Friday.”What President Trump is saying is that there are both friends and foes and friends can be more difficult. This is very difficult to understand,” Ishiba said during a legislative committee session.Announcing the new vehicle tariffs — pencilled in for next week — Trump said this week in the White House that America’s trade partners had been “taking our jobs, taking our wealth, taking a lot of things”.”They’ve taken so much out of our country, friend and foe alike. And frankly, friend has been oftentimes been much worse than foe,” he added.The measures have caused consternation among US allies. Canada angrily reacted to Trump’s tariff, which could devastate the nation’s auto industry, with Prime Minister Mark Carney declaring the era of deep bilateral relations was “over”.For Japan, Ishiba warned: “The impact this will have on the Japanese economy will be extremely significant. There is nothing to be gained by getting into a big fight over it. We will explain logically (to Washington).”The point is to make them understand imposing such high tariffs on Japan will not bring a special benefit to the United States.”One in 10 Japanese jobs are tied to the automotive industry.Ishiba said on Thursday that Japan was reviewing an “appropriate” response to the tariffs.”We believe that the current measures and other broad-based trade restrictions by the US government could have a significant impact on the economic relationship between Japan and the US, as well as on the global economy and the multilateral trading system,” government spokesman Yoshimasa Hayashi said.Trump’s move has worried investors, who were already on edge over a string of other tariffs he has imposed including on steel and aluminium.In afternoon trade, Toyota plunged 4.76 percent in Tokyo, Honda fell 4.77 percent and Nissan lost 2.97 percent, extending Thursday’s steep losses.Top trade officials from South Korea, Japan and China were meanwhile set on Sunday to meet in Seoul to discuss economic cooperation, a government source told AFP on Friday. 

Asian markets were mixed Friday as traders brace for next week’s expected wave of US tariffs, while auto firms extended their painful losses following President Donald Trump’s announcement of steep levies on vehicle imports.The mood on trading floors has soured in recent weeks as the White House presses ahead with its hardball policy approach that has hit friend and foe alike and fuelled recession fears.The president’s pledge to impose 25 percent levies on all autos coming into the United States overshadowed earlier indications that planned reciprocal measures due on Trump’s so-called “Liberation Day” on April 2.Governments around the world have hit out at the announcement, with Canadian Prime Minister Mark Carney saying the “old relationship” of deep economic, security and military ties with Washington “is over”.But warnings of retaliation have stoked worries of a long-running global trade war and a reignition of inflation that could force central banks to rethink plans to cut interest rates.Uncertainty over Trump’s plans and long-term intentions has led to uncertainty among investors, sparking a rush out of risk assets into safe havens such as gold, which hit a new record high of $3,066.56 Friday.Analysts said that while there is hope negotiations with Washington could see the duties tempered, investors were likely choosing to play a wait-and-see game.After another down day on Wall Street, equity markets in Asia were mixed Friday, with auto firms again taking the brunt.Tokyo sank more than two percent as Toyota — the world’s biggest carmaker — Honda, Nissan and Mazda tumbled between 1.5 and 3.9 percent.Also deep in the red was Nippon Steel after it said it would invest as much as $7 billion to upgrade US Steel if its huge takeover goes ahead. It had initially flagged a $2.7 billion investment.Seoul was off more than one percent as Hyundai gave up 3.1 percent.Tariff worries also saw Shanghai, Taipei and Manila fall.However, Hong Kong advanced thanks to a rally in Chinese tech firms, while Sydney, Singapore and Wellington were also in the green.Investors will be keeping a close eye on the release later in the day of US personal consumption expenditures data — the Federal Reserve’s preferred gauge of inflation — hoping for an idea about the impact of Trump’s policies.The figures come after data this week showed consumer confidence was at its lowest level since 2021 — during the pandemic — owing to growing concerns over higher prices.News that the US economy expanded at a slightly faster pace than estimated in the final three months last year did little to stir excitement.On currency markets the yen strengthened against the dollar after a report showing inflation in Tokyo — a barometer of Japan as a whole — rose more than expected in March, boosting bets on another central bank rate hike.- Key figures around 0230 GMT -Tokyo – Nikkei 225: DOWN 2.1 percent at 37,011.66 (close)Hong Kong – Hang Seng Index: UP 0.4 percent at 23,661.60Shanghai – Composite: DOWN 0.3 percent at 3,365.23Euro/dollar: DOWN at $1.0794 from $1.0796 on ThursdayPound/dollar: UP at $1.2949 from $1.2947Dollar/yen: DOWN at 150.78 yen from 151.04 yenEuro/pound: DOWN at 83.36 pence from 83.38 penceWest Texas Intermediate: FLAT at $69.90 per barrelBrent North Sea Crude: FLAT at $74.00 per barrelNew York – Dow: DOWN 0.4 percent at 42,299.70 (close)London – FTSE 100: DOWN 0.3 percent at 8,666.12 (close) 

China has rushed ahead in recent years as the world’s forerunner in wind energy, propelled by explosive local demand as Beijing aggressively pursues strategic and environmental targets.Goldwind — the country’s sector champion — is set to publish financial results for last year on Friday, offering a window into how its domestic operations and overseas expansion efforts are faring.AFP looks at how Goldwind and its Chinese peers turned the country into the indisputable global superpower in wind:- Recent gusts -China has been a major player in global installed wind capacity since the late 2000s but it is only in the past few years that it has surged to the top.Companies from mainland China accounted for six of the top seven turbine manufacturers worldwide last year, according to a report this month by BloombergNEF.Goldwind held the top spot, followed by three more Chinese firms — the first time European and US firms all ranked below third.The country’s global wind energy layout is lopsided, however, with the majority of its firms’ growth driven by domestic demand.”The market for wind turbines outside of China is still quite diversified,” Lauri Myllyvirta, lead analyst at the Centre for Research on Energy and Clean Air (CREA), told AFP.The situation “can stay that way if countries concerned about excessive reliance on China create the conditions for the non-Chinese suppliers to expand capacity”, he added.- Overcapacity concerns -China’s wind energy boom has fuelled fears in Western countries that a flood of cheap imports will undercut local players, including Denmark’s Vestas and GE Vernova of the United States.A report in January by the Organisation for Economic Cooperation and Development (OECD) showed Chinese wind turbine manufacturers have for decades received significantly higher levels of state subsidies than member countries.Western critics argue that the extensive support from Beijing to spur on the domestic wind industry have led to an unfair advantage.The European Union last April said it would investigate subsidies received by Chinese firms that exported turbines to the continent.”We cannot allow China’s overcapacity issues to distort Europe’s established market for wind energy,” said Phil Cole, Director of Industrial Affairs at WindEurope, a Brussels-based industry group, in response to the recent OECD report.”Without European manufacturing and a strong European supply chain, we lose our ability to produce the equipment we need — and ultimately our energy and national security,” said Cole.- Gold rush -Goldwind’s origin lies in the vast, arid stretches of western China, where in the 1980s a company named Xinjiang Wind Energy built its first turbine farm.Engineer-turned-entrepreneur Wu Gang soon joined, helping transform the fledgling firm into a pioneer in China’s wind energy sector, establishing Goldwind in 1998.”Goldwind was there from the beginning,” said Andrew Garrad, co-founder of Garrad Hassan, a British engineering consultancy that had early engagement with China’s wind industry.”The West was looking at China as an impoverished place in need of help,” Garrad told AFP.”It wasn’t, then, an industrial power to be reckoned with.”Garrad, whose company once sold technology to several Chinese wind energy startups including Goldwind, remembers Wu paying him a visit in Bristol during the early 1990s to talk business.The two spent three days negotiating a software sale for around £10,000 — a sum “which, for both of us at the time, was worth having”, recalled Garrad.”He didn’t have any money at all, and so he was staying at the youth hostel, sharing a room with five other people,” he said.Wu’s firm would go on to strike gold, emerging in this century as a global leader in wind turbine technology and installed capacity.- Global future? -In recent years, as China’s wind market matures, state subsidies are cut and the economy faces downward pressure, Goldwind has increasingly been looking overseas.In 2023, the firm dropped “Xinjiang” from its official name.The move was interpreted as an attempt to disassociate from the troubled region, where Beijing is accused of large-scale human rights abuses.It was also seen as adopting a more outward-facing and international identity.China’s wind power manufacturers are making some headway overseas, particularly in emerging and developing countries, said Myllyvirta of the CREA.This is particularly true “after Western manufacturers were hit by supply chain disruptions and major input prices due to Covid and Russia’s invasion of Ukraine”, he added.Emerging markets affiliated with Beijing’s “Belt and Road” development push seem to offer Chinese players the best chance at overseas growth, Endri Lico, analyst at Wood Mackenzie, told AFP.”Chinese strength comes from scale… and strategic control over domestic supply chains and raw material resources,” said Lico.Western markets remain strongholds for local players, however, “due to entrenched positions, energy security concerns and protectionist policies”, he added.

Australia’s competition regulator gave the go-ahead Friday for Qatar Airways to launch an alliance with Virgin Australia.The decision clears Qatar Airways to cooperate for five years in an “integrated alliance” with the Australian carrier, in which it will take a 25-percent stake.The pact would double flights between Doha and major Australian airports, the Australian Competition and Consumer Commission said.The boost in Australia-Middle East flights would create “minimal, if any, public detriment”, the authority’s commissioner, Anna Brakey, said in a statement.”This will likely place downward price pressure on these routes and will also give customers of Virgin Australia and Qatar Airways a greater choice of international flights with additional connectivity and loyalty program benefits,” she said.Under the pact, Qatar Airways and Virgin Australia plan to launch 28 new weekly services between Doha and the Australian cities of Sydney, Melbourne, Brisbane and Perth.The competition regulator’s decision was widely expected after it issued a draft determination in February proposing to grant authorisation.The two airlines, along with Virgin owner Bain Capital, announced the long-rumoured alliance proposal in October last year. The new flights are expected to stoke competition on expensive long-haul routes long dominated by Qantas.Qantas — along with its low-cost brand Jetstar — has a more than 60 percent share of the Australian market and boasts strong political clout.Virgin Australia started bankruptcy proceedings in 2020, laying off hundreds of staff as the Covid-19 outbreak grounded international flights. US private equity giant Bain Capital came to the airline’s rescue after the Australian government refused to bail out the majority foreign-owned company. Qatar Airways has been looking to increase its foothold in the Australian market.In 2023, Qatar launched a bid to put on 21 extra international flights to and from Australia each week. But the Australian government snubbed that request, citing a 2020 strip search scandal at Doha Airport as a “factor”. Women were pulled off 10 Qatar Airways flights at Doha Airport and forced to take invasive gynaecological exams after a baby was abandoned in an airport bathroom. Three Australian women lodged legal action against Qatar Airways following the ordeal, although the case was eventually dismissed. 

World powers on Thursday blasted US President Donald Trump’s steep tariffs on imported vehicles and parts, urging retaliation as trade tensions intensify and price hikes appear on the horizon.Major car exporter Germany called for a firm response from the European Union, while Japan said it “will consider all options.”Canadian Prime Minister Mark Carney said Thursday that the “old relationship” of deep economic, security and military ties with Washington “is over,” adding that he expected to speak with Trump in the next day or two.The 25 percent US duties, which take effect on April 3 at 12:01 am (0401 GMT), impact foreign-made cars, light trucks and vehicle parts.Experts warn of higher vehicle costs, and Italian carmaker Ferrari said it would raise prices on many models sold to the United States by up to 10 percent from next week.Global stock markets slumped with shares in automakers like Toyota, Hyundai, Mercedes and others falling. Wall Street’s main indexes closed lower as shares in General Motors and Ford fell.French Finance Minister Eric Lombard said the only solution for the European Union is to “raise tariffs on American products in response.”Carney, who earlier called the tariffs a “direct attack” on his country’s workers, said he convened a meeting to discuss trade options.Trump stepped up threats overnight, saying on social media that Canada and the EU could face “far larger” surcharges if they worked together “to do economic harm to the USA.”- Price surge -JPMorgan analysts estimate the tariffs on vehicles and parts over time could cause an increase of around $4,000 to $5,300 in average auto prices.It said around 82 percent of Ford’s US sales are produced domestically, with the corresponding figures for Stellantis at 71 percent and General Motors at 53 percent.The American Automotive Policy Council representing the big three automakers warned tariffs must be implemented in a way that “avoids raising prices for consumers” and preserves the industry’s competitiveness.Canadian Vehicle Manufacturers’ Association president Brian Kingston said the measures would bring higher costs for producers and consumers, alongside “a less competitive industry.”While Trump invoked emergency economic powers for some earlier tariffs, his auto levies build on a government investigation completed in 2019.- ‘Cheaters’ -About one in two cars sold in the United States are manufactured in the country. Among imports, about half come from Mexico and Canada, with Japan, South Korea and Germany also major suppliers.The White House estimates that of the US-made cars, their average domestic content is likely around 40 percent.Top Trump trade aide Peter Navarro on Wednesday blasted “foreign trade cheaters” who he said turned the US manufacturing sector into a “lower wage assembly operation for foreign parts.”He took aim at Germany and Japan for reserving construction of higher-value parts to their countries.Since returning to the presidency, Trump has imposed tariffs on imports from major trading partners Canada, Mexico and China — alongside a 25 percent duty on steel and aluminum.The latest levies add to those already in place for autos.But the White House said vehicles entering the United States under the US-Mexico-Canada Agreement (USMCA) can qualify for a lower rate depending on their American content.USMCA-compliant auto parts will remain tariff-free as officials establish a process to target their non-US content.Mexican President Claudia Sheinbaum said tariffs were contrary to the North American trade deal, but noted her country would wait until April before responding.- ‘Bargaining chip’ -Uncertainty over Trump’s trade plans have roiled financial markets, while consumer confidence slips.Trump has defended tariffs as a way to raise government revenue and revitalize US industry.Targeting imported cars however would have “a devastating impact” on many close US trading partners, said Asia Society Policy Institute vice president Wendy Cutler.Abby Samp of Oxford Economics said she expects “additional investments in US plants could be used as a bargaining chip to lower tariffs.”Besides automobiles, Trump is considering other sector-specific tariffs, including on pharmaceuticals, semiconductors and lumber.He has promised “Liberation Day” on April 2, when he is set to unveil reciprocal levies tailored to different trading partners, to address practices deemed unfair.

Automakers were battered Thursday as stock markets fell on both sides of the Atlantic after US President Donald Trump announced significant tariffs on imported vehicles and parts, pressing ahead with tough trade policies many fear will spark a recession.On Wall Street, the Dow, the tech-heavy Nasdaq and the broad-based S&P 500 all slipped, with General Motors giving up 7.4 percent and Ford dipping 3.9 percent.In Tokyo, Toyota — the world’s top-selling carmaker — fell two percent. Honda shed 2.5 percent, Nissan was off 1.7 percent and Mazda dropped six percent.Seoul-listed Hyundai gave up more than four percent.Among European auto firms, Volkswagen shed 1.3 percent, Porsche lost 2.6 percent, Mercedes dropped 2.7 percent and BMW fell 2.5 percent, helping to push the Frankfurt DAX index down 0.7 percent.Jeep maker Stellantis lost more than four percent.India’s Tata Motors, which exports Jaguars and Land Rovers to the United States, also lost ground — leading analysts to speculate on where markets may be headed. “The trade war has escalated, and unsurprisingly, German carmakers are leading the declines or are among the biggest decliners today,” said StoneX Group analyst Fawad Razaqzada.Jochen Stanzl, chief market analyst with CMC Markets, added: “While investors see a fair chance for successful negotiations between the European Union and the US in the coming weeks, many prefer to wait for these discussions rather than speculate in advance.”Ultimately, these actions could follow familiar patterns of threats before negotiations that produce compromises which Trump can proudly present, Stanzl added.Recent speculation that Trump might not impose sector-specific tariffs in early April has “been entirely undermined by the fact that the president has instead opted to start announcing such measures ahead of that date,” said analyst Joshua Mahony of Scope Markets.There also had been indications that tariffs lined up for Trump’s so-called “Liberation Day” on April 2 could be less severe than feared.However, the White House’s habit of alternating between tough talk and leniency has fanned uncertainty, and the latest announcement did little to soothe nerves.”What we’re going to be doing is a 25 percent tariff on all cars that are not made in the United States,” Trump said Wednesday.The rate, which takes effect on April 3 at 12:01 am (0401 GMT), affects foreign-made cars and light trucks imported into America. The tariffs also apply to auto parts.The move has heightened concerns about the impact on global growth and corporate profits, particularly for carmakers in Mexico, Japan, South Korea, and Germany, said Daniela Sabin Hathorn, senior market analyst at Capital.com.About half of the cars sold in the United States are made within the country. Of the imported vehicles, about half come from Mexico and Canada, with Japan, South Korea and Germany also major suppliers.Japan’s government called the tariffs “extremely regrettable” while Canadian Prime Minister Mark Carney called it a “direct attack” on his country’s workers.Carney later added that the era of deep economic, security and military ties between Canada and the United States was “over.”French Finance Minister Eric Lombard warned: “The only solution for the European Union will be to raise tariffs on American products in response.”- Key figures around 2030 GMT -New York – Dow: DOWN 0.4 percent at 42,299.70 points (close)New York – S&P 500: DOWN 0.3 percent at 5,693.31 (close)New York – Nasdaq: DOWN 0.5 percent at 17,804.03 (close)London – FTSE 100: DOWN 0.3 percent at 8,666.12 (close) Paris – CAC 40: DOWN 0.5 percent at 7,990.11 (close)Frankfurt – DAX: DOWN 0.7 percent at 22,678.74 (close)Tokyo – Nikkei 225: DOWN 0.6 percent at 37,799.97 (close)Hong Kong – Hang Seng Index: UP 0.4 percent at 23,578.80 (close)Shanghai – Composite: UP 0.2 percent at 3,373.75 (close)Euro/dollar: UP at $1.0796 from $1.0757 on WednesdayPound/dollar: UP at $1.2947 from $1.2891Dollar/yen: UP at 151.04 yen from 150.54 yenEuro/pound: DOWN at 83.38 pence from 83.41 penceWest Texas Intermediate: UP 0.4 percent at $69.92 per barrelBrent North Sea Crude: UP 0.3 percent at $74.03 per barrel

The 25 percent tariffs on automobiles announced by President Donald Trump are meant to revitalize American industry, but Detroit’s giants were stunned Thursday by their scale and faced a beating on Wall Street.While the implementation of the tariffs had been anticipated for weeks, their details surprised manufacturers and experts as the levies will not only apply to imports of finished vehicles but parts as well.That will be particularly painful because the sector relies on a complex global supply chain, sometimes involving multiple border crossings, with assembly in one country of parts manufactured in others.The levies kick in April 3 at 04:01 GMT, according to the decree signed by the Republican president on Wednesday.The manufacturing process at Ford and General Motors depends largely on a highly complex back-and-forth between the United States, Mexico, and Canada — the three countries linked by the USMCA, a free trade agreement signed by Trump during his first term.However, Trump’s decree doesn’t provide exemptions for imports under USMCA, dashing industry hopes that car parts would be spared.The tariffs include “crucial parts” — engines, transmissions, powertrains, and electrical components are on the list that could be expanded.Parts not originally manufactured in the United States will face 25 percent tariffs just like finished foreign vehicles.The White House noted that of the 16 million new vehicles sold in the United States last year, half were assembled in the country but contained only 40-50 percent American-made components.It also said the trade deficit for automotive parts was $93.5 billion.Stock Market DeclineManufacturers faced a drubbing in the stock market Thursday.General Motors plummeted 7.3 percent, while Ford closed down 3.8 percent and Stellantis 1.2 percent. US listed shares of Toyota and Honda fell by 2.8 percent and 2.7 percent, respectively.According to JPMorgan analysts, 82 percent of vehicles sold by Ford are produced in the United States, ahead of Stellantis (71 percent), Honda (68 percent), Toyota (57 percent), and General Motors (53 percent).Trump’s decree demands that manufacturers determine the percentage between US parts and foreign parts in components or finished vehicles entering the United States, with the 25 percent tariff imposed only on foreign-made parts.This presents a real challenge for manufacturers — who will be penalized for incorrect allocations — but also for the authorities to track them.An implementation delay has therefore been granted, allowing the Commerce Department time to figure out how to proceed.According to JPMorgan, once tariffs are collected across the entire intended scope, they would generate $82 billion annually. Trump claimed Wednesday that they would bring in “more than $100 billion.”JPMorgan estimated that the largest tariff bill would be paid by GM ($13 billion) while Ford should pay around $4.5 billion.Experts have no doubt that there will be a price increase for new vehicles in the United States, which will subsequently affect a weakened used car market as owners keep their vehicles longer.The president’s goal is to increase manufacturing in the United States, but relocating factories or reconfiguring a supply chain cannot happen overnight.Foreign nations have also threatened retaliatory measures which could further impact the sector.In the meantime, manufacturers will have to decide between fully passing on the additional cost to the end consumer, cutting into their margins, or a mix of both.The cost of an affected new vehicle could increase by 9-12 percent, or $4,000 to $5,300, JPMorgan anticipates.”With added cost pressures, automakers may pull back on incentives, which could make it more difficult for some consumers to find affordable options,” said Jessica Caldwell from Edmunds.According to Caldwell, insurance premiums should also increase due to inflation in spare parts costs.

In a bid to escape financial woes, French games giant Ubisoft said Thursday it was creating a new subsidiary around its most popular franchises such as “Assassin’s Creed” in partnership with China’s Tencent.The new unit, valued at around four billion euros ($4.3 billion), will be 25-percent controlled by Tencent, which will stump up 1.16 billion euros of new investment in exchange.Alongside “Assassin’s Creed”, the subsidiary will bring together “Far Cry” and “Tom Clancy’s Rainbow Six” — among the most popular long-running names in Ubisoft’s roster of game universes.Ubisoft appears to be making the most of last week’s successful launch of the latest “Assassin’s Creed” instalment, “Shadows”, on which much of its future was riding.Conditions for the Tencent deal include a bar on the French company losing its majority in the subsidiary for its first two years.Tencent cannot increase its stake for the next five years — unless Ubisoft loses its majority in the mean time.Chief executive Yves Guillemot called the step a “new chapter in (Ubisoft’s) history”.Last year brought a string of woes for Ubisoft, with several disappointing releases for would-be blockbuster games and a slump in its stock price.Spinning up the new subsidiary — whose name has not yet been announced — by the end of the year means the company is “crystallising the value of our assets, strengthening our balance sheet, and creating the best conditions for these franchises’ long-term growth and success,” Guillemot said.The deal also sees Tencent assert its hold on Ubisoft more strongly after climbing aboard in 2022.The Chinese firm holds almost 10 percent of the group’s stock — a threshold it is not allowed to cross before 2030 — while the founding Guillemot family owns around 15 percent.- Breaking the streak -Earlier this year, Ubisoft had said that it was “actively exploring various strategic and capitalistic options”.Finance chief Frederick Duquet said Thursday that “we received many expressions of interest that turned into several non-binding offers for different options”.In the end, directors opted to create the subsidiary as this “allowed Ubisoft to maintain control of its key assets, with a view to creating very large brands worth multiple billions in the coming years,” Duquet added.Ubisoft plans to make further announcements on changes to the group at a later stage.The company’s market capitalisation stood at 1.7 billion euros by close of trading in Paris Thursday — or less than half the valuation of the new subsidiary.Teams working on the three major franchises will be brought together in the new France-based unit, especially Ubisoft’s Montreal studios — one of the largest in the company.In total, the publisher employs around 18,000 people worldwide, 4,000 of them in France.”Assassin’s Creed Shadows” has pulled in three million players since its March 20 release, breaking a streak of disappointing launches for Ubisoft.The group will nevertheless push ahead with a cost-cutting plan drawn up in early 2023, under which it has already closed studios outside France and shed 2,000 jobs.Ubisoft’s troubles reflect wider doldrums in the video games sector over the past two years.